Sheridan Company traded machinery with a book value of $746650 and a fair value of $ XXXXXXXXXXIt received in exchange from Pharoah Company a machine with a fair value of $796000. Sheridan also paid...

Sheridan Company traded machinery with a book value of $746650 and a fair value of $685000. It received in exchange from Pharoah Company a machine with a fair value of $796000. Sheridan also paid cash of $79600 in the exchange. Pharoah’s machine has a book value of $746650. What amount of gain or loss should Sheridan recognize on the exchange (assuming lack of commercial substance)?