Bloomington Inc. exchanged land for equipment and $2,400 in cash. The book value and the fair value of the land were $104,200 and $89,400, respectively.

Assuming that the exchangehascommercial substance, Bloomington would record equipment and a gain/(loss)on exchange of assets in the amounts of:

EquipmentGain/(loss)a.$87,000$2,400b.$104,200$(2,400)c.$87,000$(14,800)d.None of these answer choices are correct.