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Machine that cost 121,500 and has accumulated depreciation of 45,000 is exchanged for machine with a fair value of 72,000 and 18,000 cash is received.
Machine that cost 121,500 and has accumulated depreciation of 45,000 is exchanged for machine with a fair value of 72,000 and 18,000 cash is received. The exchange has commercial substance. The gain/loss to be recognized from the exchange is
a. 18,000 gain
b. 6,000 loss.
c. 13,500 gain.
d. 21,000 loss.
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