Bloomington Inc. exchanged land for equipment and $2,600 in cash. The book value and the fair value of the land were $105,000 and $89,700, respectively.

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

Equipment

Gain/(loss)

$105,000

$(2,600).

$87,100

$(15,300).

All of these answer choices are incorrect.

$87,100

$2,600.