Hyde Company traded in an old machine with a book value of $15,000 on a new machine.The exchange did not have commercial substance.The new machine,which had a cash price of $75,000,was purchased for $64,000 cash plus the old machine.Hyde should record the cost of the new machine as
A) $64,000.
B) $71,000.
C) $75,000.
D) $79,000.

Question

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The Answer of Hyde Company traded in an old machine with a book value of $15,000 on a new machine.The exchange did not have commercial substance.The new machine,which had a cash price of $75,000,was purchased for $64,000 cash plus the old machine.Hyde should record the cost of the new machine as
A) $64,000.
B) $71,000.
C) $75,000.
D) $79,000.

Hyde Company Traded in an Old Machine with a Book