Hinrich Company Traded Machinery with a Book Value of $120,000

Multiple Choice

Hinrich Company traded machinery with a book value of $120,000 and a fair value of $200,000.It received in exchange from Noach Company a machine with a fair value of $180,000 and cash of $20,000.Noach's machine has a book value of $190,000.What amount of gain should Hinrich recognize on the exchange?

A) $ -0-
B) $8,000
C) $20,000
D) $80,000