Rogers co. had a sheet metal cutter that cost $144,000 on january 5th 2008. it has an estimated life of 10 years and salvage value of $24,000. on april 3rd 2013, the old cutter is exchanged for a new cutter with fair value of 72,000. the exchange lacked commerical substance. rogers also received 18,000 in cash. the last fiscal period ended on december 31, 2012 and straight line depreciation is used.
A)show the calculation of the amount of the gain or loss to be recognized by rogers.
B) prepare all entries that are necessary on april 3rd 2013.