Windsor Ltd traded a used truck(cost $31,700, accumulated depreciation $28,530, Fair value $1,370) for a new truck. Windsor did look up the value of its used truck and determined its fair value at the date of the trade is $1,370. The list price of the new trucks $37,070 and the trade-in allowance given on the trade was $4,540. 1 Windsor paid $32,530.

What should be the amount used as the cost of the new truck? 

 Prepare Windsor's entry to record the exchange.