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Question: Barry sold depreciable property used in his business to Ken for $192,000 cash plus a bond redeemable in 5 years for $95,000, but currently trading on the NYSE for $98,000. The property cost Barry $310,000 plus $45,000 in capital improvements and had actual accumulated depreciation at the time of the sale of $225,000. The amount of accumulated depreciation he should have taken was $205,000.
Determine the amount of gain or loss recognized.
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What is the effect of this transaction on individual asset accounts, individual liability accounts, and the Owner's Equity account
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