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A company bought new heating system for $52,000 and was given a trade-in of $2,200 on an old heating system, so the company paid $49,800
A company bought new heating system for $52,000 and was given a trade-in of $2,200 on an old heating system, so the company paid $49,800 cash with the trade-in. The old system had an original cost of $46,400 and accumulated depreciation of $42,600. If the transaction has commercial substance, the company should record the new heating system at:
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