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Company A gives Plant and Machinery ($500,000 cost, $200,000 accumulated depreciation) and $100,000 cash for...

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Accounting

Company A gives Plant and Machinery ($500,000 cost, $200,000 accumulated depreciation) and $100,000 cash for AI Machinery. The fair value of the Plant and Machinery is $350,000. The fair value of the AI Machinery is $450,000. *

Gain on Exchange is $50,000

Loss on Exchange is $50,000

Gain on Exchange is $100,000

Loss on Exchange is $100,000

Which is the right option ?

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