Accounting: The Small Truck

"Suppose you purchase a small truck for $22900 by taking out a loan of $14700, making an additional investment in the business of $3000 and paying for the rest out of cash on hand. What is the change in fixed assets you would see on the balance sheet? Please be careful about sign convention."

Answer:

This is actually a question about the definition of fixed assets masquerading as a calculation problem. The only fixed asset that changed was the acquisition of the truck. So, the change is an increase in fixed assets equal to the value of the truck, $22900 in this case.

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