Example 3: Our firm has an old asset with NBV of $10,000 (80,000-70,000) and FMV of $18,000. We will exchange it for a new asset which has a list price of $100,000; we will also have to pay cash of $75,000. This transaction does NOT have commercial substance. 1. g/l on old: 2. Recognize: Gain or loss? Commercial substance? Cash received