e. The accrued portion of accumulated depreciation should remain unchanged and no more depreciation should be taken. Correct. The cost and accumulated depreciation should not be removed from the accounts until the disposal of the asset.FeedbackThe correct answer is: The accrued portion of accumulated depreciation should remain unchanged and no more depreciation should be taken.Question 8CorrectMark 10.00 out of 10.00Flag questionQuestion textA truck costing $45,000 and having an estimated salvage value of $4,500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57,000. A trade-in allowance of $22,500 is received for the old truck and the difference is paid in cash. The old truck has been depreciated for three years using the straight-line method. Assuming that the exchange would be deemed to not have commercial substance, the new truck would be recorded at:Select one:a. $34,500. b. $57,000. c. $55,200. Correct. On the date of exchange, the book value of the old truck is $20,700 ($45,000 minus accumulated depreciation of $24,300). The trade-in allowance of $22,500 indicates a gain on exchange of $1,800. In an exchange of non-monetary assets not having commercial substance, a gain is not recognized, but reduces the cost of a new asset. Therefore, the cost of the new truck is$55,200 ($57,000 minus $1,800), and no gain is recognized.