Equipment was acquired for $210,000 and has accumulated depreciation of $93,000. The business exchanges this equipment for new e
quipment. The new equipment has a market value of $304,000 and the business pays $52,000 cash. Assume the exchange has commercial substance.
The exchange results in a:
(A) gain $187,000
(B) loss $187,000
(C) gain $135,000
(D) loss $135,000
The exchange results in a:
(A) gain $187,000
(B) loss $187,000
(C) gain $135,000
(D) loss $135,000
1 answer:
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Answer
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Explanation
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