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

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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?


Definitions:

Free-association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way to explore unconscious thoughts and feelings.

Abreaction

A psychological process in which repressed emotional tension is released and expressed, often through verbalization or reenactment of past traumatic events.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, within the environment and in the context of their social relationships.

The Present

The current moment or period of time that is neither past nor future.

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