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Charm Co. owns a delivery truck with an original cost of $10,000 and accumulated depreciation...

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Accounting

Charm Co. owns a delivery truck with an original cost of $10,000 and accumulated depreciation of $7,000. Charm acquired a new truck by exchanging the old truck and paying $2,000 in cash. The new truck has a fair value of $5,000 at the time of the exchange. What amount of gain or loss should Charm recognize?

$3,000 loss.

$0

$2,000 gain.

$2,000 loss.

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