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5. ABC Company had equipment that cost $660,000 with accumulated depreciation of $360,000. The equipment was exchanged for equipment with a fair value of $480,000.

5.

ABC Company had equipment that cost $660,000 with accumulated depreciation of $360,000. The equipment was exchanged for equipment with a fair value of $480,000. ABC Company also paid $120,000 in cash. The exchange lacked commercial substance. ABC's gain was

$180,000 gain

$60,000 gain

$48,000 gain

no gain or loss is recognized

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