1. Sweet Co. acquired two machines for $70,000. An appraisal costing $600 showed that the machines had fair values of $32,000 and $48,000, respectively. The two assets should be individually recorded at costs of:

a. $20,000 and $40,000

b. $28,000 and $42,000

c. $28,240 and $42,360

d. $32,240 and $48,360