A fixed asset priced at $100,000 is acquired by trad¬ ing in a similar asset that has a book value of $25,000. Assuming that the trade-in allowance is $30,000 and that $70,000 cash is paid for the new asset, what is the cost of the new asset for finan¬ cial reporting purposes?

A. $100,000 C. $70,000 B. $95,000 D. $30,000 AppendixLO1