Byrde Company purchased a truck. The seller asked for $11,000, but Byrde paid only $10,000 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $15,000. What amount does Byrde record on its financial statements for the truck

Byrde Company

The amount that Byrde should record on its financial statements for the truck is:

= $10,000.

Explanation:

a) Data and Calculations:

Seller's asking price = $11,000

Amount paid after negotiation = $10,000

Fair price for the truck = $15,000

b) The amount to be recognized or recorded by Byrde on its financial statements for the truck is the cost price, that is, the amount that Byrde paid actually for the truck. The fair price cannot be recognized, since GAAP does not allow for noncurrent assets to be recognized at their fair prices. The historical cost is objective and verifiable, unlike the $15,000 fair price or the seller's asking price.

d. to get countries or companies to stop doing something objectionable.

answerchemical property;