Multiple Choice
A machine that was purchased for $100,000 has an accumulated depreciation of $70,000 as of the current date.The corporation exchanges the machine for a new machine.The new machine has a market value of $120,000 and the corporation pays cash of $100,000.Assume the exchange has commercial substance.What is the result of this exchange?
A) gain of $10,000
B) gain of $5,000
C) loss of $10,000
D) loss of $30,000
Correct Answer:
Verified
Correct Answer:
Verified
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