Bloomington Inc. exchanged land for equipment and $3,300 in cash. The book value and the fair value of the land were $105,700 and $88,200, respectively.

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

Equipment

Gain/(loss)

Multiple Choice)

a) $84,900

$3,300.

b) $84,900

$(17,500).

c) $105,700

$(3,300).

d) All of these answer choices are incorrect.