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A Truck,costing $25,000 and Uninsured,was Wrecked the Very First Day

Question 27

Multiple Choice

A truck,costing $25,000 and uninsured,was wrecked the very first day it was used.It can either be disposed of for $5,000 cash and be replaced with a similar truck costing $27,000,or rebuilt for $20,000 and be brand new as far as operating characteristics and looks are concerned.The net relevant cost of replacing the truck is:


A) $5,000.
B) $20,000.
C) $22,000.
D) $25,000.
E) $27,000.

Correct Answer:

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