Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Old Equipment Cash
Book Value Fair Value Received
Equipment A $ 74,000 $ 81,300 $ 11,300
Equipment B $ 61,600 $ 54,800 $ 10,300
For Equipment B, Pensacola would record a gain/(loss) of:.
a. $5,300
b. $(6,800)
c. $(7,800)
d. none of these answer choices are correct

b. $(6,800)

Explanation:

The computation of the gain or loss for the equipment B is shown below:

= Fair value - book value

where,

Fair value = $54,800

And, the book value = $61,600

Now placing these values to the above formula

So, the gain or loss i.e. to be recorded is

= $54,800 - $61,600

= $6,800 loss

as the fair value is less than the book value so the loss of $6,800 should be recorded

it should be

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.