Hume Lodgings Purchased a Motor Vehicle at a Cost of $40

Multiple Choice

Hume Lodgings purchased a motor vehicle at a cost of $40 000.Its carrying amount is $12 000 and its fair value is assessed to be $10 000.Sinclair Ltd purchased the motor vehicle from Hume Lodgings for $14 000.What value is recorded for this motor vehicle in the balance sheet of Sinclair Ltd?

A) $14 000
B) $12 000
C) $10 000
D) $40 000