Equipment was acquired for $210,000 and has accumulated depreciation of $93,000. The business exchanges this equipment for new equipment. The new equipment has a market value of $304,000 and the business pays $52,000 cash. Assume the exchange has commercial substance.
The exchange results in a:
(A) gain $187,000
(B) loss $187,000
(C) gain $135,000
(D) loss $135,000
