A company purchased equipment valued at $145,000. It traded in old equipment for a $61,000 trade-in allowance and the company paid $84,000 cash with the trade-in. The old equipment cost $130,000 and had accumulated depreciation of $78,000. This transaction has commercial substance. What is the recorded value of the new equipment?
A. $52,000.
B. $61,000.
C. $136,000.
D. $84,000.
E. $145,000.
Answer: E
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