Lewis Company Traded Machinery with a Book Value of $760,000

Lewis Company traded machinery with a book value of $760,000 and a fair value of $720,000. It received in exchange from Timmons Company a machine with a fair value of $800,000. Lewis also paid cash of $80,000 in the exchange. Timmons's machine has a book value of $760,000. What amount of gain or loss should Lewis recognize on the exchange (assuming lack of commercial substance) ?

A) $80,000 gain
B) $ -0-.
C) $4,000 loss
D) $40,000 loss