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

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 best choice provides a net savings of:

A) $2,000.
B) $5,000.
C) $7,000.
D) $12,000.
$22,000 - $20,000 = $2,000