A company's old machine that cost $60,000 and had accumulated depreciation of $48,000 was traded in on a new machine having an estimated 20-year life with an invoice price of $72,000. The company also paid $61,000 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at:
A. $12,000.
B. $73,000.
C. $72,000.
D. $60,000.
E. $71,000.
Answer: C
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