In october 2005 ewing company exchanged an old packaging, Ask an Expert

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In October 2005 Ewing Company exchanged an old packaging machine, which cost $120,000 and was 50% depreciated, for a dissimilar used machine and paid a cash difference of $16,000. The market value of the old packaging machine was determined to be $70,000. The two machines are expected to have significantly different cash flows. For the year ended December 31, 2005, what amount of gain or loss should Ewing recognize on this exchange?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M953461

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