Tallman Company traded machinery with a book value of $600,000 and a fair value of...
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Accounting
Tallman Company traded machinery with a book value of $600,000 and a fair value of $1,000,000. It received in exchange from Lewis Company a machine with a fair value of $900,000 and cash of $100,000. Lewiss machine has a book value of $950,000. What amount of gain should Tallman recognize on the exchange (assuming lack of commercial substance)?
Group of answer choices
$40,000
$400,000
$ -0-
None of the other answers are correct
$100,000
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