Manhattan Corporation owns a jet airplane with an original cost of $958,500 and accumulated depreciation of $644,800.The company exchanged the airplane for 50,000 shares of stock held by another company as an investment.The stock is valued at $5 per share.The gain or loss recognized on the exchange would be:
A)$394,800 loss
B)$ 63,700 loss
C)$313,700 gain
D)no gain or loss should be recognized

Question

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The Answer of Manhattan Corporation owns a jet airplane with an original cost of $958,500 and accumulated depreciation of $644,800.The company exchanged the airplane for 50,000 shares of stock held by another company as an investment.The stock is valued at $5 per share.The gain or loss recognized on the exchange would be:
A)$394,800 loss
B)$ 63,700 loss
C)$313,700 gain
D)no gain or loss should be recognized

Manhattan Corporation Owns a Jet Airplane with an Original Cost