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On December 31, Slugger Batting Cages Company decides to trade in one of its batting cages for another one that has a cost of $510,000.
On December 31, Slugger Batting Cages Company decides to trade in one of its batting cages for another one that has a cost of $510,000. The seller of the batting cage is willing to allow a trade-in amount of $14,000. The initial cost of the old equipment was $255,000 with an accumulated depreciation of $225,000. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What is the amount of boot in this transaction?
a. $526,000
b. $510,000
c. $480,000
d. $496,000
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