Question: Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $35,000 for a patent. In addition, Wolf received $6,000

Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $35,000 for a patent. In addition, Wolf received $6,000 as part of the exchange. Wolf should recognize:

a. loss of $5,000

b. loss of $11,000

c. a gain of $1,000

d. no gain or loss

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