Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment were $27,000 (original cost of $75,500 less accumulated depreciation of $48,500) and $20,500, respectively. To equalize fair values, Calaveras paid $6,500 in cash. Assume the exchange has commercial substance.

A. At what amount will Calaveras value the pickup trucks?

B. How much gain or loss will the cmpany recognize on the exchange?