Noach Company Traded Machinery with a Book Value of $190,000

question 44

Multiple Choice

Noach Company traded machinery with a book value of $190,000 and a fair value of $180,000.It received in exchange from Hinrich Company a machine with a fair value of $200,000.Noach also paid cash of $20,000 in the exchange.Hinrich's machine has a book value of $190,000.What amount of gain or loss should Noach recognize on the exchange?

• A)$20,000 gain
• B)$ -0-.
• C)$1,000 loss
• D)$10,000 loss

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