Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment were $38,000 (original cost of $92,000 less accumulated depreciation of $54,000) and $51,000, respectively. To equalize fair values, Calaveras paid $8,000 in cash. Assume the exchange lacks commercial substance.

At what amount will Calaveras value the pickup trucks?

Requirements:

1. What is the value of the pickup truck?

2. How much gain or loss will the company recognize on the exchange?