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msee1021 msee1021
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Posts: 402
3 years ago
Equipment was acquired for $208,000 and has accumulated depreciation of $94,000. The business exchanges this equipment for new equipment. The new equipment has a market value of $310,000 and the business pays $60,000 cash. Assume the exchange has commercial substance. The exchange results in ________.
A) loss $136,000
B) gain $196,000
C) gain $136,000
D) loss $196,000
Textbook 

Horngren's Accounting


Edition: 11th
Authors:
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Helpmeplease11Helpmeplease11
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3 years ago
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More questions for this book are available here
 C
Explanation:  C)
Market value of assets received:$310,000
Less:
Book value of asset exchanged$114,000
Cash paid60,000174,000
Gain$136,000
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