Question: Ann & Arbor Co . exchanged a red utility van for a silver utility van and $ 1 , 2 0 0 cash. The silver

Ann & Arbor Co. exchanged a red utility van for a silver utility van and $1,200 cash. The silver utility van has
a sunroof and leather seats but is otherwise indistinguishable from the red utility van. The red utility van
was originally purchased by Ann & Arbor Co. for $36,000 and had $28,000 of accumulated depreciation at
the time of the exchange. The fair market value of the silver utility van is $8,400. What amount of gain will
Ann & Arbor Co. recognize on this exchange?

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