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Question
A company purchased equipment valued at $66,000. It traded in old equipment for a $9,000 trade-in allowance and the company paid $57,000 cash with the trade-in. The old equipment cost $44,000 and had accumulated depreciation of $36,000. This transaction has commercial substance. What is the recorded value of the new equipment?A.$ 8,000.
B.$ 9,000.
C.$57,000.
D.$65,000.
E.$66,000.
Answer
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