O'Briens Construction Ltd Exchanged Equipment That Had a Book Value

Multiple Choice

O'Briens Construction Ltd exchanged equipment that had a book value of $40 000 for a truck that had a book value (in the other entity's books) of $38 000.The fair value of the equipment is $45 000 and the fair value of the truck is $48 000.Further cost incurred to prepare the truck for use by O'Briens was $700 for signage.What is the acquisition cost of the truck?

A) $48 700
B) $40 000
C) $48 000
D) $45 700