Bismarck and Altoona exchange buildings. The transaction has commercial substance. The following information was obtained: The exchange was made, and based on the difference in appraised value, Altoona paid $10,000 to Bismarck. The new building should be recorded on Bismarck's books at:

Select one:

a. $35,000

b. $32,000

c. $40,000

d. $38,000

e. $50,000

2.

Hagen Co. exchanged a truck with a carrying amount of $12,000 and a fair value of $15,000 for a truck, paying $5,000 cash as well. The fair value of the truck received was $20,000. The exchange was considered to have commercial substance. At what amount should Hagen record the truck received in the exchange?

Select one:

a. $7,000

b. $9,000

c. $12,000

d. $15,000

e. $20,000

ASAP PLZ JUST THE RIGHT ANSWER

Cost Accumulated Depreciation Fair value based upon appraisal Bismarck's Building $60,000 20,000 50,000 Altoona's Building $45,000 20,000 40,000