A truck costs $50,000 when new and has acccumulated depreciation of $35,000. Suppose Wilson Towing exchanges the truck for a new truck. The new truck has a market value of $60,000, and Wilson pays cash of $40,000. Assume the exchange has commercial substance. What is the result of this exchange?

A trucking company plans to buy 100,000 gallons of diesel fuel in January. The spot market price is 2.40/gallon. The company can remove its risk by entering today into a (cash settled) forward contract at $2.50/gallon, whereby it receives from the counterparty the difference between 2.50 and the spot price in January (x100,000) if the spot price is above 2.50, and pays the difference if it is below 2.50.

a. true b. false

Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use

Indicate whether the statement is true or false