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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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