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Desert, Company and Beach, Company are exchanging machines. The exchange lacks commercial substance. The machine given up by Desert, Co. has a book value of

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Desert, Company and Beach, Company are exchanging machines. The exchange lacks commercial substance. The machine given up by Desert, Co. has a book value of $72,000 and a fair value of $90,000. The machine given up by Beach, Co. has a book value of $120,000. Desert company pays $22,000 cash in the exchange. What amount should Desert, Co. record as the historical cost of the new machine

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