A fixed asset with a cost of $52,000 and accumulated depreciation of $47,500 is traded for a similar asset priced at $60,000 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $5,000,at what cost will the new equipment be recorded in the books?
a. $60,500
b. $60,000
c. $54,000
d. $59,500
b
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