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Rydell Company Exchanged Business Equipment (Initial Cost $55,250; Accumulated Depreciation

Question 66

Multiple Choice

Rydell Company exchanged business equipment (initial cost $55,250; accumulated depreciation $25,450) for like-kind equipment worth $44,000 and $2,000 cash.As a result,Rydell must recognize:


A) $2,000 ordinary gain
B) $2,000 Section 1231 gain
C) No gain or loss
D) None of the above

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