Nielsen Cargo Company Recently Exchanged an Old Truck,which Cost $108,000

Multiple Choice

Nielsen Cargo Company recently exchanged an old truck,which cost $108,000 and was one-third depreciated,and paid $70,000 cash for a similar truck having a current fair value of $130,000.The exchange lacked commercial substance.At what amount should the truck be recorded on the books of Nielsen?

A) $70,000
B) $108,000
C) $130,000
D) $142,000