Dep for three month = (20000*3/12) = 5000
Book value at the exchange date = 120000-60000-5000 = 55000
Gain (loss) = New assets value-Old asset value
= 132500-(77500+55000)
Gain (loss) = 0
So answer is a) $0
Dansen Co. owns a machine that has an original cost of S120,000, annual straight-line depreciation of...
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