Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
Oceanside Enterprises is trading in its old fishing vessel for a new model. The old fishing vessel is on the books at a cost of $364,000 with accumulated depreciation of $314,600. The new fishing vessel has a list price of $538,000 but the manufacturer has agreed to reduce this by $75,000 in return for Oceanside's old fishing vessel.
-The gain or loss recognized on the exchange would be:

A) $49,400 loss
B) $25,600 gain
C) $75,000 gain
D) no gain or loss should be recognized