37. Safeco, Inc. owns a jet airplane with an original cost of $958,500 and accumulated depreciation of $644,800. The company exchanged the airplane for 50,000 shares of stock held by another company as an investment. The stock is valued at $7 per share. The gain or loss recognized on the exchange would be:

A) $294,800 loss

B) $313,700 gain

C) $ 36,300 gain

D) no gain or loss should be recognized

Answer: C Difficulty: Medium