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XYZ Corp exchanged equipment with ABC Corp. The following information pertains to the exchange: XYZ Corp ABC Corp Equipment $100,000 $70,000 Accumulated Depreciation $50,000 $20,000

XYZ Corp exchanged equipment with ABC Corp. The following information pertains to the exchange: XYZ Corp ABC Corp Equipment $100,000 $70,000 Accumulated Depreciation $50,000 $20,000 Fair Value Equipment $60,000 $40,000 Cash given up $20,000 What is the gain that XYZ Corp can recognize on the transaction? Assume there is no commercial substance.

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