The Amount of Gain or Loss That Should Be Recognized

The amount of gain or loss that should be recognized on this transaction in the government-wide financial statements is

A) $0.
B) $1,000 loss.
C) $3,000 gain.
D) $12,000 loss.
Use the following information to answer questions #12 - #14
Rory City traded in a used pickup for a new pickup with a sticker price of $44,000.The old truck had a historical cost of $40,000, accumulated depreciation of $16,000, and a fair value of $27,000.The dealer took the old truck and $10,000 cash for the new truck.