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Question 3 (Chapter 10) Equipment that cost $80,000 and has accumulated depreciation of $43,000 is exchanged for equipment with a fair value of $32,000 and

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Question 3 (Chapter 10) Equipment that cost $80,000 and has accumulated depreciation of $43,000 is exchanged for equipment with a fair value of $32,000 and $8,000 cash is received. The exchange lacks commercial substance Instructions (1) Show the calculation of the gain to be recognized from the exchange. (2) Prepare the journal entry for the exchange

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