Braxwell Corporation acquired the following assets associated with a manufacturing facility for a lump-sum price of $10,100,000. According to independent appraisals, the fair values were $1,275,000, $6,375,000, $1,275,000, and $3,825,000 for the building, patent, land, and equipment, respectively. The initial value of the patent would be:

Multiple Choice

• $5,050,000.

• $6,375,000.

• $0.

• $6,625,000

Alamos Co. exchanged equipment and $18,900 cash for similar equipment. The book value and the fair value of the old equipment were $81,800 and $91,200, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of: