Question

abc company purchased a large transport vehicle with shares of stock. the msrp (retail list price) of the vehicle is $243,287. they exchanged 17,293 of $2 par stock for this vehicle. the stock traded at $13 the day of the sale. what dollar amount is debited to the vehicle asset account?

Answer 1

To find the dollar amount debited to the vehicle asset account, calculate the value of the shares exchanged for the vehicle.

Step-by-step explanation:

To find the dollar amount debited to the vehicle asset account, we need to calculate the value of the 17,293 shares of $2 par stock exchanged for the vehicle.

First, let's calculate the value of the shares exchanged:

Value of the shares exchanged = Number of shares exchanged x Trading price

Value of the shares exchanged = 17,293 x $13

Value of the shares exchanged = $224,509

Therefore, $224,509 will be debited to the vehicle asset account.