Horton Stores exchanged land and cash of $4,000 for similar land. The book value and the fair value of the land were $89,500 and $100,300, respectively. Assuming that the exchange lacks commercial substance, Horton would record landnew and a gain/(loss) on exchange of assets in the amounts of:

	Land				Gain/(loss)
a.	$	104,300			$	0
b.	$	104,300			$	10,800
c.	$	93,500			$	0
d.	$	93,500			$	10,800

Multiple Choice

• Option A

• Option B

• Option C

• Option D