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On March 31, 2010, Winn Company traded in an old machine having a carrying amount of $16,800, and paid a cash difference of $6,000 for a new machine having a total cash price of $20,500.
The cash flows from the new machine are expected to be significantly different than the cash flows from the old machine. On March 31, 2010, what amount of loss should Winn recognize on this exchange?
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