Assume That a Governmental Entity Acquires a New Garbage Truck

Multiple Choice

Assume that a governmental entity acquires a new garbage truck. The garbage truck normally costs $189,000. The vendor allowed a $30,000 allowance with the trade-in of the entity's old garbage truck, which had a net book value of $42,000. The government financed the balance with a short-term bank note. The new garbage truck would be recorded in the General Capital Assets account at

A) $147,000.
B) $159,000.
C) $189,000.
D) $201,000.