Answer:
Gain $4,800
Explanation:
Calculation for gain to be recognized from the exchange
Using this formula
Gain= [(Cash received / {Cash received + Fair value}) * {(Fair value+ Cash received- (Exchanged equipment cost - Accumulated Depreciation)}]
Let plug in the formula
Gain= [($12,000 / {$12,000 + $48,000}) * {($48,000 + $12,000 - ($66,000 - $30,000)}],
Gain= [($12,000 /$60,000) * $60,000- $36,000]
Gain=0.2* $24,000
Gain= $4,800
Therefore the gain to be recognized from the exchange is $4,800
