Problem:
A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000.
Required:
Question: Assuming a trade-in allowance of $4,000, the cost basis of the new asset is
A. $54,000
B. $45,000
C. $51,000
D. $50,000
Note: Explain all steps comprehensively.