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Timmons Company traded machinery with a book value of $240,000 and a fair value of $400,000....

Timmons Company traded machinery with a book value of $240,000 and a fair value of $400,000. It received in exchange from Lewis Company a machine with a fair value of $360,000 and cash of $40,000. Lewis’s machine has a book value of $380,000. What amount of gain should Timmons recognize on the exchange?

Question 11 options:

$ -0-

$16,000

$40,000

$160,000
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Answer #1

Answer. Correct option - B , $16,000

EXPLANATION;

Ans If on an does not have amount of Exchange any commercial realized gain is Cash is substance only received which then some

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