Cliff Company Traded in an Old Truck for a New

Multiple Choice

Cliff Company traded in an old truck for a new one. The old truck had a cost of $75,000 and accumulated depreciation of $60,000. The new truck had an invoice price of $125,000. Huffington was given a $12,000 trade-in allowance on the old truck, which meant they paid $113,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck?

A) $75,000
B) $15,000
C) $128,000
D) $113,000
E) $125,000