In December 2000, RJ Exchanged an Old Bottling Machine, Which

question 89

Multiple Choice

In December 2000, RJ exchanged an old bottling machine, which cost $60,000 and was two-thirds depreciated, for a similar used machine having a current fair value of $24,000, and received a cash difference of $1,000. What is the amount of gain that RJ should recognize on this exchange in the year ended December 31, 2000?

• A) $5,000
• B) $8,000
• C) $0
• D) $3,000

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