Bloomington Inc. exchanged land for equipment and $3,900 in cash. The book value and the fair value of the land were $105,800 and $89,000, 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.$85,100$3,900b.$105,800$(3,900)c.$85,100$(16,800)d.None of these answer choices are correct.