Question: Assume the same facts as in Exercise 9-25, except that the book value of the press traded in is $185,000. (a) What is the amount

Assume the same facts as in Exercise 9-25, except that the book value of the press traded in is $185,000. (a) What is the amount of cash given? (b) What is the gain or loss on the exchange?

Data from Exercise 9-25:

A printing press priced at a fair market value of $400,000 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press.

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