What should be the cost of new truck for financial account

Reference no: EM13305306

On January 2, 2012, Rapid Delivery Company traded in an old delivery truck for a newer model. The exchange lacked commercial substance. Data relative to the old and new trucks follow:

Old Truck
Original cost $36,000

Accumulated depreciation as of January 2, 2012 24,000
Average published retail value 11,000
New Truck
List price $60,000
Cash price without trade-in 54,000
Cash paid with trade-in 45,000

What should be the cost of the new truck for financial accounting purposes?

$45,000.

$54,000.

$57,000.

$60,000.

Reference no: EM13305306

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