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Financial Accounting

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Gain or Loss on Sale of Trademark, Partial Year

FINACT-THE5QK

Your client just sold their trademark since the product using it was discontinued. The trademark was purchased on January 1, Year 1 and was sold on June 30, Year 3.

The details over the life of the trademark and the sale include:

Details on Sold Trademark:
Original cost \$300,000
Accumulated Amortization, June 30, Year 3 \$--?--
Useful life, in years 15
Salvage value \$-0-
Cash received when sold \$200,000
Gain or Loss on sale *\$ — ? —

What is the amount of the gain or loss on sale of trademark?