Rally Company exchanged a piece of equipment with a fair market value of $20,000 and a book value of $25,000 for a truck with a fair market value of $16,000 and cash of $4,000. Ralley Company should record the truck at a cost of Answer $15,000 and a recognized loss of $5,000 $16,000 and a recognized loss of $5,000 $20,000 and a recognized loss of $5,000 $20,000 and a recognized loss of $1,000

Rally Company exchanged a piece of equipment with a fair market value of $20,000 and a book value of $25,000 for a truck with a fair market value of $16,000 and cash of $4,000. Ralley Company should record the truck at a cost of

Answer

		$15,000 and a recognized loss of $5,000
		$16,000 and a recognized loss of $5,000
		$20,000 and a recognized loss of $5,000
		$20,000 and a recognized loss of $1,000

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