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Corbin Corporation has a plant asset with a cost of $40,000 that is traded for a similar asset priced at $70,000. Assuming accumulated depreciation of
Corbin Corporation has a plant asset with a cost of $40,000 that is traded for a similar asset priced at $70,000. Assuming accumulated depreciation of $15,000 and a trade-in allowance of $10,000, what is the cost basis for the new asset?
$40,000
$95,000
$85,000
$70,000
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