Lewis Company traded machinery with a book value of $190,000 and a fair value of $180,000.It received in exchange from Timmons Company a machine with a fair value of $200,000.Lewis also paid cash of $20,000 in the exchange.Timmons's machine has a book value of $190,000.What amount of gain or loss should Lewis recognize on the exchange?

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The book value of Lewis's machinery was $190,000 and its fair value was $180,000, indicating a loss of $10,000. Timmons's machine has a fair value of $200,000, which exceeds the fair value of Lewis's machine by $20,000. However, since Timmons's machine has a book value of $190,000, there is no gain or loss on the exchange of the machines. Therefore, the only amount that needs to be considered is the cash payment of $20,000, which results in a total loss of $10,000 ($190,000 - $180,000) for Lewis. Thus, the answer is D, a $10,000 loss.

Lewis Company Traded Machinery with a Book Value of $190,000