What amount of gain or loss should vaughn recognize

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Vaughn Manufacturing traded machinery with a book value of $930680 and a fair value of $878000. It received in exchange from Cullumber Company a machine with a fair value of $974580. Vaughn also paid cash of $97458 in the exchange. Cullumber's machine has a book value of $930680. What amount of gain or loss should Vaughn recognize on the exchange (assuming lack of commercial substance)?

Reference no: EM132419117

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