Juan's business delivery truck is destroyed in an accident.He paid $40,000 for the truck,and $30,000 of depreciation has been deducted during its period of use.The insurance company pays Juan $32,000 due to the accident.What is the minimum amount that Juan must spend on a new truck to avoid any gain recognition?
A)$40,000
B)$32,000
C)$10,000
D)$22,000

Question

Quizplus · Accepted Answer

The Answer of Juan's business delivery truck is destroyed in an accident.He paid $40,000 for the truck,and $30,000 of depreciation has been deducted during its period of use.The insurance company pays Juan $32,000 due to the accident.What is the minimum amount that Juan must spend on a new truck to avoid any gain recognition?
A)$40,000
B)$32,000
C)$10,000
D)$22,000

Juan's Business Delivery Truck Is Destroyed in an Accident