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On March 10, 2013, Linda Shoes exchanged a used truck and Rs. 50,000 cash for a new truck. The old truck originally cost Rs. 900,000,
On March 10, 2013, Linda Shoes exchanged a used truck and Rs. 50,000 cash for a new truck. The old truck originally cost Rs. 900,000, had up-to-date accumulated depreciation of Rs. 750,000, and a fair value of Rs. 300,000. A. Calculate whether the exchange resulted in gain or loss. B. What will be the journal entry to record the trade? C. Calculate whether the exchange resulted in gain or loss if the asset Linda Shoes exchanged is a machine.
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