Timmons Company traded machinery with a book value of $240,000 and a fair value of $400,000. It received in exchange from Lewis Company a machine with a fair value of $360,000 and cash of $40,000. Lewiss machine has a book value of $380,000. What amount of gain should Timmons recognize on the exchange?

Question 11 options:

	$ -0-
	$16,000
	$40,000
	$160,000