On January 1,2018,Jacob Inc.purchased a commercial truck for $48,000 and uses the straight-line depreciation method.The truck has a useful life of eight years and an estimated residual value of $8,000.On December 31,2019,the truck was exchanged for a new truck valued at $60,000.Jacob received a trade allowance of $35,000 on the exchange with the remaining $25,000 paid in cash.What amount of gain or loss should Jacob Inc.record on December 31,2019?
A) Gain,$5,000.
B) Loss,$18,000.
C) Loss,$38,000.
D) Loss,$3,000.
Correct Answer:
Verified
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