In October 2014, Pollock Company exchanged a used packaging machine having a book value of $240,000 for a new machine and paid a cash difference of $30,000 . The market value of the used packaging machine was determined to be $280,000 . The exchange had commercial substance. In its income statement for the year ended December 31 . 2014, how much gain should Pollock recognize on this exchange?
a. $0
b. $10,000
c. $30,000
d. $40,000
D
Business
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