Practice Exam I- Requires Respondus LockDown Browser Started: Jun 13 at 5:10pm Quiz Instructions Question 4 Clarksten Co. and Kay Inc. exchange equipment. Information related to this exchange for both companies follows. Equipment given up Equipment (original cost) Accumulated depreciation Fair value Cash exchanged Clarkston Co. $45,000 25,000 16,000 (4,000) Kay Inc. $35,000 20,000 20,000 4,000 Assuming that the exchange has no commercial substance, Kay Inc. should recognize a O Gain of $4,000. O Loss of $5.000. O Gain of $1,000 OGain of $5,000. Previous 3 pts Next C Ti Att 1 Cutter Enterprises purchased equipment for $72,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining balance method, depreciation for 2019 would be: $17,280. $18,240. $28,800. None of these answer choices are correct