Ford Inc. exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and a fair value of $105,000. Assume the exchange has commercial substance. The journal entry by Ford Inc. to record this exchange would include the following:

a. A debit to PP&E for $97,500

b. A debit to PP&E for $112,500

c. A credit to Gain from the exchange for $7,500

d. A debit to Gain the exchange for $7,500

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