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Below is the information relative to an exchange of assets by Norton Company. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash

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Below is the information relative to an exchange of assets by Norton Company. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash Paid $100,000 $95,000 $10,000 a) What is the gain (or loss) from the disposal of the old equipment? Show your calculation b) What is the cost of the new equipment received? Show your calculation

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