Mantle Company exchanged a used autograph-signing machine with Maris Company for a similar machine with less use. Mantle's old machine originally cost $50,000 and had accumulated depreciation of $40,000, as well as a market value of $40,000, at the time of the exchange. Maris' old machine originally cost $60,000 and at the time of the exchange had a book value of $30,000 and a market value of
$32,000 . Maris gave Mantle $8,000 cash as part of the exchange. The exchange lacked commercial substance. Mantle should record the cost of the new machine at
a. $8,000.
b. $10,000.
c. $16,000.
d. $32,000.
D
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