Problem
On December 29, 2019, the company exchanged 10,000 shares of Lulu, Inc. common stock, which Charie was holding as an investment, for an equipment from Faye Corporation. The common stock of Lulu, Inc., which had been purchased by Charie for 45 per share, had a quoted market value of 50 per share on the date of exchange the equipment had a market value of 470,000. The transaction was recorded by a debit to Equipment and a credit to Investment in Lulu, Inc. for 450,000. What was the gain on disposal of asset recorded by Charie?