A machine cost $120,000, has annual depreciation of $20,000, and has accumulated depreciation of $90,000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $27,500, it is exchanged for a machine with a fair value of $35.000 and the proper amount of cash is paid. The exchange lacked commercial substance. The new machine should be recorded at: Multiple Choice