Hong Kong Bus Service traded in a used bus for a new one. The original cost of the old bus was $97,000. Accumulated depreciation at the time of the trade-in amounted to $7,090. The new bus cost $91,900 but Hong Kong was given a trade-in allowance of $62,400. Hong Kong adopts the cost model as its accounting policy in subsequently measuring its property, plant, and equipment.

a.	What amount of cash must Hong Kong pay to acquire the new bus? (Omit the "$" sign in your response.)

Payment of cash

$

b.	Compute the gain or loss on the disposal for financial reporting purposes. (Loss amount should be indicated by a minus sign. Omit the "$" sign in your response.)

(Click to select)Gain in tradeLoss in trade

$