Equipment had a list (selling) price of $50,000. By paying cash, Buyer. Inc negotiated a $46,000 purchase price for the equipment. Price similar equipment for $49,000. What is the relevant measure of the value of the equipment for financial reporting purposes for the Buyer. Inc?

1. $50,000

2. $46,000 on the day of purchase, $49,000 on the balance sheet date

3. $49,000

4. $46,000