As of December 31, 2014, a machine that originally cost $600,000 and has annual depreciation of $100,000 and has accumulated depreciation of $450,000. On April 1, 2015, when the machine has a fair value of $137,500, it is exchanged for a machine with a fair value of $675,000 and the proper amount of cash is paid. The exchange has commercial substance.

___	The new machine should be recorded on the company's books at
	A)	$537,500.
	B)	$612,500.
	C)	$662,500.
	D)	$675,000.
	E)	Some other answer than those shown above.