Question: A machine that was purchased for $ 1 1 0 , 0 0 0 has accumulated depreciation of $ 7 0 , 0 0 0

A machine that was purchased for $110,000 has accumulated depreciation of $70,000. The business exchanges the machine for a new one. The new machine has a market value of $140,000, and the business pays $110,000 cash. Assume the exchange has commercial substance. This exchange results in a q,
loss of $40,000
gain of $10,000
loss of $10,000
gain of $5000
A machine that was purchased for $ 1 1 0 , 0 0 0

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