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Alamos Co. exchanged equipment and $18,300 cash for similar equipment. The book value and the fair value of the old equipment were $81,100 and $91,800,

Alamos Co. exchanged equipment and $18,300 cash for similar equipment. The book value and the fair value of the old equipment were $81,100 and $91,800, respectively.

Assuming that the exchange lacks commercial substance, Alamos would record a gain/(loss) of:

$(10,700).

$29,000.

$ 0.

$ 10,700.

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