A machine owned by Chiellini has an original cost of $450,000, has annual depreciation of $30,000, and has accumulated depreciation of $180,000 on December 31, 2020. On May 1, 2021, it is exchanged for a machine with a fair value of $245,000. Chiellini paid $10,000 in the exchange. The exchange lacked commercial substance. The new machine should be recorded at:

Multiple Choice

• $245,000

• $270,000

• $220,000

• $260,000