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Below is the information relative to an exchange of assets by Marigold Corporation. The exchange lacks commercial substance. Old Equipment Book Value Case I $455,000

Below is the information relative to an exchange of assets by Marigold Corporation. The exchange lacks commercial substance.

Old Equipment Book Value Case I $455,000 Case II $299,000

Fair Value Case I $502,000 Case II $270,500

Cash Paid Case I $85,000 Case II $41,300

Which of the following would be correct for Marigold to record in Case I?

Record Equipment at: A $540,000 B $540,000 C $455,000 D $587,000

Record a gain (loss) of: A $47,000 B $0 C ($28,500) D $47,000

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