Hartwell Trucking Traded a Used Truck with a Book Value

question 26

Multiple Choice

Hartwell Trucking traded a used truck with a book value of $1,700 and a fair market value of $2,300 for a new truck with a list price of $17,800. Hartwell agreed to pay $13,000 in cash for the exchange in addition to giving up the used truck. Assuming the exchange has commercial substance, at what amount should the new truck be recorded?

• A) $17,800
• B) $15,300
• C) $14,700
• D) None of these

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