Answer:
B. $15,000
Explanation:
First, we should understand that there is a difference between the book value and the fair value. This difference will either be a gain or a loss.
Secondly, for the new truck/asset; it should be recognized based on the subtraction of the additional amount paid for the new asset from the fair value of asset exchanged.
Therefore,
The Value of the New Asset= Exchanged Asset's fair value - Consideration paid for the new asset
= The value of the new asset = $20,000 - $5,000= $15,000
The Amount to be recorded for the truck received is $15,000
