Allen Inc. exchanged land and cash of $4,500 for similar land. The book value and the fair value of the old land were $89,900 and $100,100, respectively. Assuming that the exchange lacks commercial substance, Allen would record equipmentnew and a gain/(loss) on exchange of assets in the amounts of:

	Land				Gain/(loss)
a.	$	104,600			$	0
b.	$	104,600			$	10,200
c.	$	94,400			$	0
d.	$	94,400			$	10,200

Multiple Choice

• Option A

• Option D

• Option C

• Option B