Bloomington Inc. exchanged land for equipment and $2,500 in cash. The book value and the fair value of the land were $105,300 and $89,300, respectively.

Bloomington would record equipment and a gain/(loss) of:

Equipment

Gain/(loss)

Multiple Choice

• All of these answer choices are incorrect.

• $105,300

  $(2,500).

• $86,800

  $2,500.

• $86,800

  $(16,000).