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Happy Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $160,000 and accumulated depreciation of $80,000. The

Happy Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $160,000 and accumulated depreciation of $80,000. The fair market value of the old sailboat was $42,000. The company paid $200,000 in addition to the old sailboat to acquire the new sailboat. If this transaction has commercial substance, what is the loss that should be recorded on this exchange?

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