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

Multiple Choice

In January 2014,Bevis Company exchanged an old machine,with a book value of $256,000 and a fair value of $260,000,and paid $40,000 cash for a similar used machine having a fair value of $300,000.The exchange lacked commercial substance.At what amount should the machine acquired in the exchange be recorded on Bevis' books?

A) $256,000
B) $296,000
C) $300,000
D) $304,000