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Lewis Company traded machinery with book value of $190,000 and fair value of $180,000. It received in exchange from Timmons Company a machine with a
Lewis Company traded machinery with book value of $190,000 and fair value of $180,000. It received in exchange from Timmons Company a machine with a fair value of $200,000. Lewis also paid cash of $20,000 in the exchange. Timmonss machine has a book value of $190,000. Assuming that there is no commercial substance for that exchange transaction, what amount of gain or loss should Lewis recognize on the exchange?
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