Morgan Trucking Traded a Used Truck with a Book Value

Multiple Choice

Morgan Trucking traded a used truck with a book value of $1,700 and a fair market value of $2,300 for a new truck with a list price of $17,800.Morgan agreed to pay $13,000 in cash for the exchange in addition to giving up the used truck.Assuming the exchange has commercial substance,at what amount should the new truck be recorded?

A) $17,800
B) $15,300
C) $14,700
D) None of these