A company purchased a machine valued at $66,000.It traded in an old (similar) machine for a $9,000 trade-in allowance,meaning the company paid $57,000 cash with the trade-in.The old machine cost $44,000 and had accumulated depreciation of $36,000.What is the recorded value of the new machine?
A)$8,000
B)$9,000
C)$57,000
D)$65,000
E)$66,000

Question

Quizplus · Accepted Answer

The recorded value of the new machine is the amount that the company actually paid in cash. 
$57,000 (cash paid with trade-in) + $9,000 (trade-in allowance) = $66,000. 
Therefore, the recorded value of the new machine is $66,000.

A Company Purchased a Machine Valued at $66,000