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CDD Company traded machinery with a book value of $950,000 and a fair value of $900,000. It received from Timmons Company a machine with a

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CDD Company traded machinery with a book value of $950,000 and a fair value of $900,000. It received from Timmons Company a machine with a fair value of $1,000,000. CDD also paid cash of $100,000 in the exchange. Timmons's machine has a book value of $950,000. What amount of gain or loss should CDD recognize on the exchange (assuming a lack of commercial substance)? $5,000 loss \$-0-. $50,000 loss $100,000 gain

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