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On December 31, the Strike Company traded in one of its batting cages for another that costs $500,000. Strike receives a trade allowance of $11,000.

On December 31, the Strike Company traded in one of its batting cages for another that costs $500,000. Strike receives a trade allowance of $11,000. The old equipment had an initial cost of $215,000 and has accumulated depreciation of $185,000. Depreciation has been recorded through the end of the year. The difference will be paid in cash. What is the amount of profit or loss on this transaction?

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