Sarasota Corporation wishes to exchange a machine used in its operations. Sarasota has received the following offers from other companies in the industry. 1. Ivanhoe Company offered to exchange a similar machine plus $27,600. (The exchange has commercial substance for both parties.) 2. Shamrock Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Bridgeport Company offered to exchange a similar machine, but wanted $3,600 in addition to Sarasota's machine. (The exchange has commercial substance for both parties.) In addition, Sarasota contacted Indigo Corporation, a dealer in machines. To obtain a new machine, Sarasota must pay $111,600 in addition to trading in its old machine. Sarasota Ivanhoe Shamrock Bridgeport Indigo Machine cost $192,000 $144,000 $182,400 $192,000 $156,000 Accumulated depreciation 72,000 54,000 85,200 90,000 -0- Fair value 110,400 82,800 110,400 114,000 222,000