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Melvin Motor Sales exchanged a car from its inventory for a computer to be used as a noncurrent operating asset. The following information relates to
Melvin Motor Sales exchanged a car from its inventory for a computer to be used as a noncurrent operating asset. The following information relates to this exchange that took place on July 31, 2011: Carrying amount of the car $30,000 Listed selling price of the car $45,000 Fair Value of the Computer $43,000 Cash difference paid b Melvin Motor $5,000 The exchange has commercial substance. On July 31, 2011, how much profit should Melvin recognize on this exchange
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