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Ahmadi Corporation exchanged an old equipment, which its cost $80,000, its annual depreciation expense $21,500 and its accumulated depreciation $43,000, for another equipment that its

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Ahmadi Corporation exchanged an old equipment, which its cost $80,000, its annual depreciation expense $21,500 and its accumulated depreciation $43,000, for another equipment that its fair value $40,000 including $8,000 cash according to the exchange. Requirement: What is the value of gain or loss to be recognized from that exchange at Ahmadi Corporation books, assuming it has commercial substance

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