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16. On December 31, Red Berets sold one of its batting cages for $25,000. The equipment had an initial cost of $295,000 and has accumulated
16. On December 31, Red Berets sold one of its batting cages for $25,000. The equipment had an initial cost of $295,000 and has accumulated depreciation of $250,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?
a. Gain of $250,000
b. Gain of $20,000
c. Loss of $25,000
d. Loss of $20,000
e. None of the above.
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