Answer:
$240,000
Explanation:
The computation of the gain to be recognized is shown below:
= Total Exchange value - net value
where,
Total exchange value equals to
= Fair value of equipment + cash received
= $480,000 + $120,000
=$600,000
And, the net value would be
= Estimated cost - accumulated depreciation
= $660,000 - $300,000
= $360,000
ow put these values to the above formula
So, the value would be equal to
= $600,000 - $360,000
= $240,000
