On January 2, 2020, Bramble Corp. traded in an old delivery truck for a newer model. The exchange lacked commercial substance. Data relative to the old and new trucks follow:

Old Truck

Original cost $27500

Accumulated depreciation as of January 2, 2020 27500

Average published retail value 15200

New Truck

List price $74900

Cash price without trade-in 64500

Cash paid with trade-in 57000

What should be the cost of the new truck for financial accounting purposes?

$57000.

$57000.

$74900.

$49500.