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why is this answer correct? Romney Company exchanged...

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Accounting

why is this answer correct?

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Romney Company exchanged one business automobile for a replacement automobile. The old automobile had an original cost of $40,000, a book value of $16,000, and a fair value of $24,000 when exchanged. In addition, Romney paid $9,000 cash to acquire the replacement automobile. The list price of the replacement automobile was $45,000. The replacement will help generate significantly greater cash flows in the business. At what amount should the replacement automobile be recorded for financial accounting purposes? 530,000 $24,000 535,000 533.000 Ched Ny work Corred

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