During $2014,$ Garnet Corporation purchased three pieces of equipment at an auction for the lump sum of $$200,000.$ It cost Garnet $$40,000$ to have the equipment delivered and installed. The equipment was appraised at the following fair values:

Machine $1$

$$120,000$

Machine $2$

$105,000$

Machine $3$

$75,000$

Machine $2$ should be recorded on Garnet's books at$?$ Explain calculation in detail. Answer is $$84,000.$

a$.$

$$84,000$

b$.$

$$120,000$

c$.$

$$70,000$

d$.$

$$105,000$