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A truck costs $127,000 when new and has accumulated depreciation of $95,000. Suppose Frank Towing exchanges the truck for a new truck. The new truck
A truck costs $127,000 when new and has accumulated depreciation of $95,000. Suppose Frank Towing exchanges the truck for a new truck. The new truck has a market value of $90,000, and Frank pays cash of $43,000. Assume the exchange has commercial substance. What is the result of this exchange? OA. No gain or loss OB. Loss of $15,000 O C. Gain of $15,000 D. Gain of $58,000
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