Reus Truck Company replaces the tires of its trucks. The new tires have a price of $127,000. The old tires have an original cost of $144,000 and accumulated depreciation of $128,000. Reus gave the old tires and $111,000 cash for the new tires. What is the effect of the entry to record the replacement on total assets?

Multiple Choice

• Decrease of $17,000

• No effect

• Increase of $16,000

• Decrease of $11,000

• Increase of 111,000