CBC Incorporation trades its used machine for a new model at BCC Incorporation. The exchange has commercial substance. The used machine has a book value of $20,000 (original cost $30,000 less $10,000 accumulated depreciation) and a fair value of $15,000. The new model lists for $40,000. CBC Incorporation trades its used machine for a new model at BCC Incorporation. The exchange has commercial substance. The used machine has a book value of $20,000 (original cost $30,000 less $10,000 accumulated depreciation) and a fair value of $15,000. The new model lists for $40,000