Timmons Company Traded Machinery with a Book Value of $185,000

question 83

Multiple Choice

Timmons Company traded machinery with a book value of $185,000 and a fair value of $200,000.It received in exchange from Lewis Company a machine with a fair value of $180,000 and cash of $20,000.Lewis's machine has a book value of $190,000.What amount of gain should Timmons recognize on the exchange?

• A)$ -0-
• B)$15,000
• C)$20,000
• D)$5,000

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