d of A machine cost $120,000, has annual depreciation of $20,000, and has accumulated depreciation of $90,000 on December 31, 2015. On April 1, 2016, when the machine has a fair value of $27,500, it is exchanged for a machine with a fair value of $135,000 and the proper amount of cash is paid. The exchange has commercial substance. The gain to be recorded on the exchange is flag Select one: a. $15,000. b. $5,000. C. $2,500. d. $0. Previous page Next page Return to: General