2. Law Entity (LE) acquires a copyright in exchange for $5,000 cash and a patent with a carrying value of $20,000 (cost $30,000) and a fair value of $25,000. This exchange has commercial substance. What is the amount of gain or loss recognized on exchange?

a. Gain of $10,000

b. Gain of $5,000

c. Loss of $10,000

d. Loss of $5,000

e. There is no gain or loss on exchange