Mantle Company Exchanged a Used Autograph-Signing Machine with Maris Company

Multiple Choice

Mantle Company exchanged a used autograph-signing machine with Maris Company for a similar machine with less use.Mantle's old machine originally cost $50,000 and had accumulated depreciation of $40,000,as well as a market value of $40,000,at the time of the exchange.Maris' old machine originally cost $60,000 and at the time of the exchange had a book value of $30,000 and a market value of $32,000.Maris gave Mantle $8,000 cash as part of the exchange.The exchange lacked commercial substance.Mantle should record the cost of the new machine at

A) $8,000.
B) $10,000.
C) $16,000.
D) $32,000.