Collins Corporation, of Camden, Maine, wants to exchange its manufacturing equipment forRockland Company's equipment. Both parties agree that Collins' machinery is worth $200,000 and that Rockland's machinery is worth $175,000. Collins will not enter into the transaction unless it qualifies as a like-kind exchange. If Collins wants to avoid gain, what could the parties do toequalize the value exchanged but still allow the exchange to qualify as a like-kind exchange?

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The Answer of Collins Corporation, of Camden, Maine, wants to exchange its manufacturing equipment forRockland Company's equipment. Both parties agree that Collins' machinery is worth $200,000 and that Rockland's machinery is worth $175,000. Collins will not enter into the transaction unless it qualifies as a like-kind exchange. If Collins wants to avoid gain, what could the parties do toequalize the value exchanged but still allow the exchange to qualify as a like-kind exchange?

Collins Corporation, of Camden, Maine, Wants to Exchange Its Manufacturing