Laguna Enterprises Is Trading in Its Old Schooner for a New

Multiple Choice

Laguna Enterprises is trading in its old schooner for a new model.The old schooner is on the books at a cost of $535,000 with accumulated depreciation of $384,300.The new schooner has a list price of $765,000 but the manufacturer has agreed to reduce this by $125,000 in return for Laguna's old schooner.The new schooner should be recorded on the books at a cost of:

A) $640,000
B) $739,300
C) $765,000
D) $790,700