Use the Following Information for Questions 110 and 111

question 104

Multiple Choice

Use the following information for questions 110 and 111.
Equipment that cost $220,000 and has accumulated depreciation of $100,000 is exchanged for equipment with a fair value of $160,000 and $40,000 cash is received. The exchange lacked commercial substance.
-The gain to be recognized from the exchange is

• A) $16,000
• B) $20,000
• C) $60,000
• D) $80,000

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Definitions:

Tympanic Membranes

The tympanic membranes, or eardrums, are thin tissues that separate the outer ear from the middle ear, vibrating in response to sound waves.

Lacrimal Canaliculi

Small channels located in each eyelid that drain tears from the eye's surface into the lacrimal sac as part of the tear drainage system.

Homozygous Recessive

A genetic condition where an individual inherits two identical recessive alleles for a specific trait.

Color Blindness

Color blindness is a genetic or acquired visual disorder characterized by an inability to distinguish between some or all colors.