Answer:
no gain or loss
Explanation:
Cost of the old car: $ 60,000.00
Depreciation to date: $ 35,000.00
Current book value : = $ 60,000.00- $ 35,000.00
= $ 25,000.00
New car value: $ 70,000.00
Paid amount in cash : $ 45,000.00
difference : = $ 70,000.00.-45,000.00
= $ 25,000
Commercial gain or loss equal: book value of the old car - the difference in the value of new car and amount paid in cash
= $25,000-$25,000=0( no gain or loss)
