Hinrich Company traded machinery with original cost of $145,000 and accumulated depreciation of $25,000. It received in exchange from Noach Company a machine with a fair value of $180,000 and cash of $20,000. Hinrich expects its future cash flows not to change as a result of this transaction. Noachs machine has a book value of $190,000. What amount of gain or loss should Hinrich recognize on the exchange? a. $ -0- *b. $8,000 gain c. $20,000 loss d. $80,000 gain Please explain why the answer is B; the other answer on this site has incorrect work