Flint Corporation is selling a piece of machinery it owns that has a net book value of $60,000 and a original cost basis of $100,000. An appraisal reported the current market value of the piece of machinery to be $40,000. On June 6, 2024, Clyde Energy Company offered to buy the piece of machinery for $30,000. This offer was rejected by the management of Flint Corporation. On June 15, 2024, Clyde Energy Company made a second offer to purchase the piece of machinery for $35,000. The two companies settled on a purchase price of $39,000. The next day, Flint purchased a piece of machinery exactly like the one it agreed to sell to Clyde Energy Company for $44,000. Under the cost concept, at what amount should the machinery be recorded in the accounting records of Clyde Energy Company?
Group of answer choices
$40,000.
$100,000.
$39,000.
None of the answer selections are correct.
$44,000.
$60,000.
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