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Question - Watkins Ltd. acquired a new delivery truck and traded in its old delivery truck with an original cost of $50,000. On the date of the exchange, the old truck had a fair value of $ 20,000, and its net book value (carrying value) was $ 19,000. In addition, Watkins paid $ 65,000 cash for the new truck, which had a list price of $ 90,000. At what amount should Watkins record the new truck for financial accounting purposes?
A. $90,000
B. $65,000
C. $85,000
D. $84,200
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