QUESTION 6

Rory City traded in a used pickup for a new pickup truck with a sticker price of $44,000. The old pickup had a fair value of $26,000, historical cost of $47,000, and accumulated depreciation of $18,000. The dealer took the old truck and $16,000 for the new truck. The new truck should be reported on the government-wide financial statements at

1. $15,000
2. $42,000
3. $44,000
4. $41,000