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A fixed asset with a cost of $26,042 and accumulated depreciation of $23,438 is traded for a similar asset priced at $46,376 (fair market value)

A fixed asset with a cost of $26,042 and accumulated depreciation of $23,438 is traded for a similar asset priced at $46,376 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,950, at what cost will the new equipment be recorded in the books?

a. $46,376

b. $41,426

c. $44,030

d. $48,980

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