A Company's Old Machine That Cost $40,000 and Had Accumulated

Multiple Choice

A company's old machine that cost $40,000 and had accumulated depreciation of $30,000 was traded in on a new machine of like purpose having an estimated 20-year life with an invoice price of $50,000.The company also paid $43,000 cash,along with its old machine to acquire the new machine.The value of new machine should be recorded at:

A) $40,000
B) $47,000
C) $50,000
D) $53,000
E) $10,000