Question: Johnson Co. trades in a machine with a book value of $10000 for a new machine with a list value of $12000. In addition to

Johnson Co. trades in a machine with a book value of $10000 for a new machine with a list value of $12000. In addition to the old machine, Johnson also pay $5000 cash. The gain or loss on this exchange (which has commercial substance) would be how much?

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