Question - Fernando Company traded machinery with original cost of $300,000 and accumulated depreciation of $15,000. It received in exchange from Rooney Company a machine with a fair value of $300,000. Fernando also paid cash of $30,000 in the exchange. Rooney's machine has a book value of $285,000. What amount of gain or loss should Fernando recognize on the exchange?
a. $30,000 gain
b. $ -0-
c. $1,500 loss
d. $15,000 loss