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Nemo, INC. traded manufacturing equipment that had cost of $600,000 and had been owned by nemo for 8 years to incredible also paid Nemo $60,000 on the trade. The equipment traded by nemo had been depreciated using the straight-line method and a residual of $6,250- and 10-years life. The exchange lacked commercial substance.
Question 1: What is the amount of gain or loss recognized at the time of the trade by namo?(note: for a loss, place a negative sign in front of your answer)
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