Question 17 Davis Company exchanged an old machine with a cost of $120,000, total accumulated depreciation of $70,000, and a fair market value of $45,000 for a similar new machine. In addition to the trade in of the old machine Davis Company also paid $20,000 cash. What amount of gain/loss should the company record for the old asset that was exchanged? O $5,000 loss O $5,000 gain O $25,000 loss O $15,000 gain 4 pts O None of the above.

Davis Company exchanged an old machine with a cost of $120,000, total accumulated depreciation of $70,000, and a fair market value of $45,000 for a similar new machine. In addition to the trade in of the old machine Davis Company also paid $20,000 cash. What amount of gain/loss should the company record for the old asset that was exchanged? $5.000 loss $5,000 gain 4 $25,000 loss $15,000 gain None of the above