A company exchanged land for equipment and received $$2,900$ in cash. The book value and the fair value of the land were $$105,600$ and $$88,600,$ respectively.

Assuming that the exchange has commercial substance, the company would record equipment and a gain$($loss$)$ on exchange of assets in the amounts of:

Equipment Gain$($loss$)$

a$.$ $ $85,700$ $ $2,900$

b$.$ $ $105,600$ $ $(2,900)$

c$.$ $ $85,700$ $ $(17,000)$

d$.$ None of the other answer choices are correct.

Option b$.$

Option d$.$

Option a$.$

Option c$.$