A Company Bought a New Display Case for $42,000 and Was

A company bought a new display case for $42,000 and was given a trade-in of $2,000 on an old display case,so the company paid $40,000 cash with the trade-in.The old case had an original cost of $37,000 and accumulated depreciation of $34,000.If the transaction has commercial substance,the company should record the new display case at:

A) $ 2,000.
B) $ 3,000.
C) $40,000.
D) $42,000.
E) $43,000.