Cliff Company traded in an old truck for a new one. The old truck had a cost of $190,000 and accumulated depreciation of $95,000. The new truck had an invoice price of $198,000. Huffington was given a $91,000 trade-in allowance on the old truck, which meant they paid $107,000 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?

Multiple Choice

• $95,000

• $202,000

• $198,000

• $190,000

• $107,000