Backhoe Construction Company recently exchanged an old truck, which cost $118,000 and was one-third depreciated, and paid $80,000 cash for a used crane having a current fair value of $140,000 . Assuming the exchange has commercial substance, at what amount should the crane be recorded on the books of Backhoe?
a. $80,000
b. $118,000
c. $140,000
d. $152,000
C
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