In January 2014,Shone Company Exchanged an Old Machine,with a Book

Multiple Choice

In January 2014,Shone Company exchanged an old machine,with a book value of $156,000 and a fair value of $140,000,and paid $40,000 cash for a similar used machine having a list price of $200,000.The exchange had commercial substance.At what amount should the machine acquired in the exchange be recorded on Shone's books?

A) $200,000
B) $196,000
C) $184,000
D) $180,000