1 Two independent companies, Levine and Shelton, are in the home-building business. Each owns a tract of land for development, but each company prefers to build on the other's land. Accordingly, they agree to exchange their land. An appraiser is hired, and from the appraiser report and the companies' records, the following infor- mation is drawn. Land Levine Co. Shelton Co. Cost (same as book value).. Fair value based on appraisal $ 80,000 100,000 $50,000 90,000 The exchange of land is made. Based on the difference in appraised values, Shelton also pays $10,000 cash to Levine. The transaction lacks commercial substance. Required For financial reporting purposes, what does Levine recognize as a pretax gain on this exchange? b. For financial reporting purposes, what does Shelton recognize as a pretax gain on this exchange? After the exchange, at what value does Levine record its newly acquired land? d. After the exchange, at what value does Shelton record its newly acquired land? C