Schopenhauer Company exchanged an old machine,

with a book value of $39,000 and a fair value of

$35,000, and paid $10,000 cash for a similar new

machine. The transaction has commercial substance.

At what amount should the machine acquired in the

exchange be recorded on Schopenhauer’s books?

(a) $45,000.

(b) $46,000.

(c) $49,000.

(d) $50,000.