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Mariot trades in its old equipment (with the following carrying values) for new equipment. Mariot received $12,000 cash on the exchange. The fair value of
Mariot trades in its old equipment (with the following carrying values) for new equipment. Mariot received $12,000 cash on the exchange. The fair value of the new equipment is $42,000. Original cost of old equipment $30,000 Accumulated depreciation on old equipment $18,000 If the transaction lacks commercial substance, what amount does Mariot assign to the new equipment?
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