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costs $52,000 when new and has accumulated depreciation of $40,000. Suppose Jackson Towing exchanges the truck for a new truck. The new truck has a

costs

$52,000

when new and has accumulated depreciation of

$40,000.

Suppose

Jackson

Towing exchanges the truck for a new truck. The new truck has a market value of

$70,000,

and

Jackson

pays cash of

$47,000.

Assume the exchange has commercial substance. What is the result of this exchange?

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