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Tallman Company traded machinery with a book value of $600,000 and a fair value of...

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Accounting

Tallman Company traded machinery with a book value of $600,000 and a fair value of $1,000,000. It received in exchange from Lewis Company a machine with a fair value of $900,000 and cash of $100,000. Lewiss machine has a book value of $950,000. What amount of gain should Tallman recognize on the exchange (assuming lack of commercial substance)?

Group of answer choices

$40,000

$400,000

$ -0-

None of the other answers are correct

$100,000

Answer & Explanation Solved by verified expert
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