Horton Stores exchanged land and cash of $5,300 for similar land. The book value and the fair value of the land were $89,300 and $101,000, respectively. Assuming that the exchange has commercial substance, Horton would record landnew and a gain/(loss) on exchange of assets in the amounts of:

Land Gain/(loss)

a. $ 106,300 $ 0

b. $ 106,300 $ 11,700

c. $ 94,600 $ 0

d. $ 94,600 $ 11,700

Multiple Choice

Option A

Option B

Option C

Option D