An entity purchased new equipment on July 1. Year 4, having a list price of $52,500. The entity traded old equipment that was being depreciated using the straight-line method and paid $35,000 in cash. The following information pertains to the old equipment: Cost on January 1, Year 1 $38,900 Estimated useful life 5 years Residual value $2,900 Fair value on July 1. Year 4 $16,000 If the old and new equipment are dissimilar, the entity will record the new equipment at . $48,700 B. $52,500 OC $51,000 D. $45,100