Wildhorse Group has negotiated the purchase of a new piece of automatic equipment at a price of HK$7,560 plus trade-in, f.o.b. factory. Wildhorse paid HK$7,560 cash and traded in used equipment. The used equipment had originally cost HK$66,960; it had a book value of HK$45,360 and a secondhand fair value of HK$49,520, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of HK$1,160.