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Gabrielle Inc. and Lucci Company have an exchange with no commercial substance. The asset given up by Gabrielle has a book value of 120,000 and
Gabrielle Inc. and Lucci Company have an exchange with no commercial substance. The asset given up by Gabrielle has a book value of 120,000 and a fair value of 135,000. The asset given up by Lucci has a book value of 220,000 and a fair value of 200,000. Boot of 65,000 is received by Lucci.
What amount should Gabrielle record for the asset received?
Select one:
a. 185,000
b. 200,000
c. 110,000
d. 135,000
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