Swifty Corporation traded machinery with a book value of $960860 and a fair value of $898000. It received in exchange from Blossom Company a machine with a fair value of $1068620. Swifty also paid cash of $106862 in the exchange. Blossom's machine has a book value of $960860. What amount of gain or loss should Swifty recognize on the exchange (assuming lack of commercial substance)?

Answer rating: 100% (QA)

Since the fair value of the machinery Swifty gave up 898000 is less than the book value 960860 Swift... View the full answer