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Below is the information relative to an exchange of assets by Bonita Industries. The exchange lacks commercial substance.
Old Equipment Book Value Fair Value Cash Paid Case
I $441000 $519000 $84500 Case
II $305500 $271500 $41600
Question 1: Which of the following would be correct for Bonita to record in Case I?
Record Equipment at:Record a gain (loss) of:
a)$525500 $78000
b)$525500 $0
c)$603500 $78000
d)$441000 $(34000)
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