Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment were $23,000 (original cost of $69,500 less accumulated depreciation of $46,500) and $28,500, respectively. Calaveras also paid $9,500 in cash. Assume the exchange lacks 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