On January 2, 2007, Quick Delivery Company Traded in an Old

On January 2, 2007, Quick 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: $\begin{array}{l}\text { Old Truck }\\\begin{array}{lr}\hline \text { Original cost } & \$ 24,000 \\\text { Accumulated depreciation as of January } 2,2007 & 16,000 \\\text { Average published retail value } & 7,000\end{array}\end{array}$

$\begin{array}{lr}\text { New Truck } & \\\hline \text { List price } & \$ 40,000\\\text { Cash price without trade-in } & 36,000\\\text { Cash paid with trade-in } &30,000 \end{array}$
What should be the cost of the new truck for financial accounting purposes?

A) $30,000.
B) $36,000.
C) $38,000.
D) $40,000.