Question: 1. 13.34 Page 419In a replacement study between a defender and a challenger, there may be a capital gain or loss when the defender asset

1. 13.34 Page 419In a replacement study between a defender and a challenger, there may be a capital gain or loss when the defender asset is sold.

(a) How is the gain or loss calculated, and

(b) how does the gain or loss affect the AW values?

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