Entity A exchanged equiptment with entity B. Data is below

Entity A Entity B

Carrying Amount 85,000 130,000

Fair Value 95,000 indeterminable

Cash paid by entity B to A 15,000

1. If the exchange has commercial substance, how much is the initial measurement of the equiptment received by Entity b?

a 95,000

b. 115,000

c. 110,000

2.If the exchange has commercial Substance, how much is the gain (loss) recognized by Entity B in the exchange?

a. (50,000)

b. (35,000)

c. 0