Final answer:
Calaveras Tire will value the pickup trucks at $25,000.
Step-by-step explanation:
The value of the pickup trucks in the exchange by Calaveras Tire is determined by considering the fair value and any cash paid, rather than the book value of the equipment. In this case, the fair value of the trucks is $17,000 and the cash paid is $8,000. Therefore, the total value of the pickup trucks is $25,000.
The fair value refers to the estimated price that would be received in a transaction between willing and knowledgeable parties in an arm's length transaction. It represents the current market value of the trucks.
The cash paid is the actual amount of money exchanged in the transaction. In this case, it is $8,000.
By adding the fair value of $17,000 and the cash paid of $8,000, we arrive at the total value of $25,000 for the pickup trucks.
It's important to note that the book value, which represents the value of an asset as recorded in the company's accounting records, is not relevant in determining the value of the pickup trucks in this exchange.