Renault Marina exchanged a boat with a cost of $80, 000 (now 75% depreciated)for another boat with a current fair value of $27, 000.No boot was paid or received.The new boat will perform the exact same function as the old boat.Renault should record the new boat at

Question

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The new boat should be recorded at its current fair value of $27,000 as no boot was exchanged. The cost and accumulated depreciation of the old boat are not relevant in this transaction.

Renault Marina Exchanged a Boat with a Cost of $80