On January 1, a business exchanged a plant asset with a book value of $1,500 for a similar asset that had a list price of $23,000 . The business received a trade-in allowance of $2,100 for the old plant asset. The exchange resulted in:
a. a gain of $600 on the disposal of a plant asset.
b. an unrecognized gain of $1,000 on the exchange of a plant asset.
c. a cost basis of $22,400 for the new plant asset.
d. a cost basis of $20,600 for the new plant asset.
e. a credit to accumulated depreciation of $21,500.
c
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