A company bought new heating system for $46,000 and was given a trade-in of $4000 on an old heating system, so the company paid $42,000 cash with the trade-in. The old system had an original cost of $40,700 and accumulated depreciation of $35,400. If the transaction has commercial substance, the company should record the new heating system at:

A. $47,300.
B. $5300.
C. $4000.
D. $42,000.
E. $46,000.


Answer: E

Business

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