cost $40,000 and had accumulated depreciation of $22,000 was traded in on a new machine. The old machine had a fair market value of $12,000. The company also paid $33,000 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at: Select one: a. $45,000. b. $40,000. c. $18,000. d. $33,000.