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Equipment that cost $656000 and has accumulated depreciation of $286000 is exchanged for equipment with a fair value of $480000 and $120000 cash is received.

Equipment that cost $656000 and has accumulated depreciation of $286000 is exchanged for equipment with a fair value of $480000 and $120000 cash is received. The exchange lacked commercial substance. The gain to be recognized from the exchange is

$46000

$278000

$194000

$84000

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