A piece of equipment that cost $32,400 and on which $18,000 of accumulated depre- ciation had been recorded was disposed of on January 2, the first day of business of the current year. For each of the following assumptions, compute the gain (loss) on the dis- posal or exchange. In addition, for assumptions 4, 5 and 6, compute the cash payment required and the amount at which the new equipment would be recorded.

1 . It was discarded as having no value. 2. It was sold for $6,000 cash.

3. It was sold for $18,000 cash.

4. It was traded in on dissimilar equipment having a list price of $48,000. A $16,200 trade-in was allowed, and the balance was paid in cash. Gains and losses are to be recognized.

5. It was traded in on dissimilar equipment having a list price of $48,000. A $7,500 trade-in was allowed, and the balance was paid in cash. Gains and losses are to be recognized.

6. Same as 5, except the items are similar and gains and losses are not to be recognized.Lo1