1. Brown Sheep Corporation exchanges one plant asset for a similar plant asset and gives cash in the exchange. The exchange is not expected to cause a material change in the future cash flows for either entity. If a gain on the disposal of the old asset is indicated, the gain will a. increase the amount to be recorded as the cost of the new asset. b. reduce the amount to be recorded as the cost of the new asset. c. be recognized in net income in the current period. d. be recognized in other comprehensive income in the current period.