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Monarch Inc. trades its old equipment for new equipment with an $28,000 fair market value. Monarch received $10,500 cash on the exchange. The old equipment

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Monarch Inc. trades its old equipment for new equipment with an $28,000 fair market value. Monarch received $10,500 cash on the exchange. The old equipment cost 45,000 and had $10,000 recorded as accumulated depreciation. If the transaction has commercial substance, what amount does Monarch assign to the new equipment? O $35,000 O $28,000 O $40,500 O $18,000

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