Cliff Company traded in an old truck for a new one. The old truck had a cost of $130,000 and accumulated depreciation of $39,000. The new truck had an invoice price of $147,000 Huffington was given a $85,000 trade-in allowance on the old truck, which meant they paid $62,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck?
a. $153,000
b. $162,000
c. $130,000
d. $91,000
e. $147,000
