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8. Ryle Company traded machinery with a carrying value of $550,000 and a fair value of $480,000 in exchange for a similar machine from Missouri
8. Ryle Company traded machinery with a carrying value of $550,000 and a fair value of $480,000 in exchange for a similar machine from Missouri Corp. Ryle also paid cash of $20,000 in the exchange. Missouri Corp.'s machine has a carrying value of $525,000. What amount of gain or loss should Ryle recognize on the exchange, assuming lack of commercial substance?
a.$0 loss
b.$70,000 gain
c.$2,800 loss
d.$70,000 loss
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