Answer:
$51,000
Explanation:
The computation of the new equipment cost is shown below:
= Fair market value + loss recorded
where,
Fair market value is $50,000
And, the loss is computed by taking the difference between the cost and accumulated depreciation. And, after that deduct it from the trade in allowance
In mathematically,
Book value = Cost - accumulated depreciation
= $41,000 - $36,000
= 5,000
Now, the loss would be
= Trade in allowance - book value
= $4,000 - $5,000
= ($1,000)
Now put these values to the above formula
So, the value would be equal to
= $50,000 + $1,000
= $51,000
