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What cost will the new equipment be recorded

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Problem 1: A fixed asset with a cost of $39,542 and accumulated depreciation of $35,588 is traded for a similar asset priced at $62,581 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $5,817, at what cost will the new equipment be recorded in the books?

Option a. $60,718

Option b. $62,581

Option c. $56,764

Option d. $66,535

Reference no: EM132476561

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