Equipment with a fair value of $600,000 and book value of $360,000 (cost $660,000 and accumulated depreciation $300,000) is exchanged for equipment with a fair value of $480,000 and $120,000 cash is received. The exchange lacked commercial substance.

The gain to be recognized from the exchange is

Group of answer choices

$240,000

$180,000

$48,000

$60,000

None of the other answers are correct