Blitzen Inc. owns equipment with a book value of $4,000 (cost $16,000 and accumulated depreciation $12,000) the fair value of the equipment was $10,000 when Blitzen exchanged it for similar equipment with a fair value of $8,000 plus $2,000 (cash is received by Blitzen) The transaction lacks commercial substances. Show all computations.

$_________________(Gain/Loss) How much is the total gain or loss REALIZED on this exchange

$_________________(Gain/Loss) How much of this gain or loss should be recognized.

circle one

Prepare the entry to record this exchange