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Sheridan Company traded machinery with a book value of $1076040 and a fair value of $1764000. It received in exchange from Pharoah Company a machine
Sheridan Company traded machinery with a book value of $1076040 and a fair value of $1764000. It received in exchange from Pharoah Company a machine with a fair value of $1638000 and cash of $182000. Pharoah's machine has a book value of $1769040. What amount of gain should Sheridan recognize on the exchange (assuming lack of commercial substance)? $182000 O $-0- $68796 O $687960
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