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An automobile costs $60,000 when new and has accumulated depreciation of $35,000. suppose the automobile is exchanged for a new automobile. the new automobile has a market value of $70,000 and we pay $45,000 in cash. assume the exchange has commercial substance. what is the result of this exchange?
(a) no gain or loss.
(b) gain of $5,000
(c) loss of $5,000
(d) gain of $45,000
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Answers: 3
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An automobile costs $60,000 when new and has accumulated depreciation of $35,000. suppose the automo...
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