Andreas Plating Co. (APC) has purchased an electroplating device listed for 450,000, with an estimated useful life of 10 years, and a projected salvage value of 25,000. In additional to the purchase price APC incurred 12,550 in duties, taxes and freight. Installation expenses amounted to 9,500. It received a discount of 5% from the listed price.

Q. If the asset was exchanged for a similar asset costing 375,000 along with a trade-in allowance of 280,000, what would be the depreciable value of the new equipment for tax purposes?

  1. 95,000
  2. 382,712
  3. 375,000

The answer is B and i dont know how!!!

when was the asset interchange done?

We can assume it of completing 10 years of life