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A company had a tractor destroyed by fire. The tractor originally cost $133,000 with accumulated depreciation of $67,200. The proceeds from the insurance company were

A company had a tractor destroyed by fire. The tractor originally cost $133,000 with accumulated depreciation of $67,200. The proceeds from the insurance company were $28,000. The company should recognize:

  • A loss of $65,800.

  • A loss of $37,800.

  • A gain of $37,800.

  • A gain of $28,000.

  • A gain of $65,800.

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