1.

Hagen Co. exchanged a truck with a carrying amount of $12,000 and a fair value of $15,000 for a truck, paying $5,000 cash as well. The fair value of the truck received was $20,000. The exchange was considered to have commercial substance. At what amount should Hagen record the truck received in the exchange?

Select one:

a. $7,000

b. $9,000

c. $12,000

d. $15,000