A company decides to exchange its old machine and ¥770,000 cash for a new machine.The old machine has a book value of ¥630,000 and a fair value of ¥700,000 on the date of the exchange.The cost of the new machine would be recorded at
A) ¥1,400,000.
B) ¥1,470,000.
C) ¥1,330,000.
D) cannot be determined.
Correct Answer:
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