Endor Fishing Company Exchanged an Old Boat for a New

Endor Fishing Company exchanged an old boat for a new one.The old boat had a cost of $260,000 and accumulated depreciation of $200,000.The new boat had an invoice price of $400,000.Endor received a trade in allowance of $100,000 on the old boat,which meant the company paid $300,000 in addition to the old boat to acquire the new boat.If this transaction lacks commercial substance,what amount of gain or loss should be recorded on this exchange?

A) $0 gain or loss.
B) $40,000 gain.
C) $40,000 loss.
D) $60,000 loss
E) $100,000 loss.