Manhattan Corporation Owns a Jet Airplane with an Original Cost

Multiple Choice

Manhattan Corporation 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 $5 per share.The gain or loss recognized on the exchange would be:

A) $394,800 loss
B) $ 63,700 loss
C) $313,700 gain
D) no gain or loss should be recognized