How much gain should rp recognize on the exchange

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Reference no: EM131972121

Problem

RP Tech received $70,000 in cash and a used grinder with a fair value of $210,000 from AE Inc., in exchange for RP's grinder. RP's grinder has a fair value of $280,000 and an undepreciated cost of $265,000. If the transaction has commercial substance, how much gain should RP recognize on the exchange and what value should it record for the acquired grinder?

Reference no: EM131972121

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