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Hoyle Company traded machinery with a book value of $475,000 and a fair value of $450,000. It received in exchange from Durler Company a machine
Hoyle Company traded machinery with a book value of $475,000 and a fair value of $450,000. It received in exchange from Durler Company a machine with a fair value of $500,000. Hoyle also paid cash of $50,000 in the exchange. Durlers machine has a book value of $475,000. What amount of gain or loss should Hoyle recognize on the exchange (assuming lack of commercial substance)?
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