Assignment:
On January 2, 2012, Rapid Delivery Company traded in an old delivery truck for a newer model. The exchange lacked commercial substance.
Data relative to the old and new trucks follow:
Old Truck
Original cost $36,000
Accumulated depreciation as of January 2, 2012 24,000
Average published retail value 11,000
New Truck
List price $60,000
Cash price without trade-in 54,000
Cash paid with trade-in 45,000
What should be the cost of the new truck for financial accounting purposes?