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Amachine cost $1560000, has annual depreciation of $260000, and has accumulated depreciation of $1235000 on December 31, 2020. On April 1, 2021, when the machine
Amachine cost $1560000, has annual depreciation of $260000, and has accumulated depreciation of $1235000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $357500, it is exchanged for a machine with a fair value of $1755000 and the proper amount of cash is paid. The exchange had commercial substance. The gain to be recorded on the exchange is O $65000 O $195000 O $97500 O $0
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