Hubbard Corporation traded an old asset for a new asset. The OLD asset had a cost of $175,000 and Hubbard had taken $110,000 of depreciation. The OLD assets fair value was $62,000. Hubbard transferred the old asset and $10,000 in cash to secure the NEW asset. What amount will Hubbard record for the NEW asset assuming the transaction lacks commercial substance?

a.

$62,000.

b.

$65,000.

c.

$75,000.

d.

$72,000.