Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment were $40,000 (original cost of $95,000 less accumulated depreciation of $55,000) and $27,000, respectively. To equalize fair values, Calaveras paid $9,000 in cash. Assume the exchange has commercial substance.

At what amount will Calaveras value the pickup trucks?

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

Value of pickup trucks Gain on exchange Loss on exchange No Gain/Loss on exchange