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Delta Enterprises trades an asset that costs $55,000 and had accumulated depreciation of another $37,000 for another asset with a fair market value of $20,000.

Delta Enterprises trades an asset that costs $55,000 and had accumulated depreciation of another $37,000 for another asset with a fair market value of $20,000. The exchange is deemed to lack commercial substance. Delta pays $500 in cash. Delta s asset has a fair market value of $19,500. Determine Delta s recorded cost of the new asset

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