Soflo Inc Acquired a New Delivery Truck in Exchange for an an Old

Soflo Inc. acquired a new delivery truck in exchange for an old delivery truck that it had acquired several years earlier for $ 50,000. On the date of the exchange, the old truck had a fair value of $ 20,000, and its net book value (carrying value) was $ 19,000. In addition, Soflo paid $ 65,000 cash for the new truck, which had a list price of $ 90,000. At what amount should Soflo record the new truck for financial accounting purposes?

A) $ 65,000
B) $ 84,200
C) $ 85,000
D) $ 90,000