Multiple Choice
Safeco,Inc.owns a jet airplane with an original cost of $958,500 and accumulated depreciation of $644,800.The company exchanged the airplane for 50,000 shares of stock held by another company as an investment.The stock is valued at $7 per share.The gain or loss recognized on the exchange would be:
A) $294,800 loss
B) $313,700 gain
C) $ 36,300 gain
D) no gain or loss should be recognized
Correct Answer:
Verified
Correct Answer:
Verified
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