On December 31, 2015, Heritage Co. traded equipment with an original cost of $200,000 and accumulated depreciation of $30,000 for a new piece of equipment with a fair value of $160,000. In addition, Heritage Co. paid $40,000 cash. Assume the exchange lacks commercial substance. What should Heritage Co. record as the cost of the new asset? Select one: O a $200,000 Ob. $160,000 Oc $120,000 Od. $130,000 Oe $170,000