Question: Schopenhauer Company exchanged an old machine, with a book value of ($ 39,000) and a fair market value of ($ 35,000), and paid ($ 10,000)

Schopenhauer Company exchanged an old machine, with a book value of $\$ 39,000$ and a fair market value of $\$ 35,000$, and paid $\$ 10,000$ cash for a similar new machine. At what amount should the machine acquired in the exchange be recorded on the books of Schopenhauer?

a. $\$ 45,000$.

b. $\$ 46,000$.

c. $\$ 49,000$

d. $\$ 50,000$.

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