Bird's old machine has a fair value of $100,000 and a book value of $92,000 (its acquisition cost was $300,000). Wren's information is below.

Wren

cost $110,000

acc.depn. $25,000

book value. $85,000

fair value. $80,000

1. What is the potential gain/loss on sale?

2. How much cash will Bird receive?

3. What is the cash proportion received?

4. What is the recognized gain?

5. What is the book value of the new truck?