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Star Corp. exchanged equipment and $18,500 cash for similar equipment. The book value and the fair value of the old equipment were $80,200 and $91,800,
Star Corp. exchanged equipment and $18,500 cash for similar equipment. The book value and the fair value of the old equipment were $80,200 and $91,800, respectively. Assuming that the exchange lacks commercial substance, Star would record a gain/(loss) on exchange of assets in the amount of:
Multiple Choice
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$30,100.
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$11,600.
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$(11,600).
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$0.
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