Chi Corporation trades an asset with a book value of $20,000 for another asset with a fair market value of $15,000. The exchange is deemed to lack…

Chi Corporation trades an asset with a book value of $20,000 for another asset with a fair market value of $15,000. The exchange is deemed to lack commercial substance. Chi s asset had a fair market value of $14,000. Chi paid $1,000 as boot. Determine Chi s cost to record the new asset from the exchange.