Question - On December 31, 2018, Fine Company acquired a new delivery truck in exchange for an old delivery truck that it had acquired in 2012. The old truck was purchased for $70,000 and had a book value of $26,600. On the date of the exchange, the old truck had a fair value of $28,000. In addition, Fine paid $91,000 cash for the new truck, which had a list price of $126,000. The exchange lacked commercial substance. At what amount should Fine record the new truck?
a. $91,000.
b. $119,000.
c. $117,600.
d. $126,000.