Horton Stores exchanged land and cash of $5,600 for similar land. The book value and the fair value of the land were $88,900 and $100,600, 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.$106,200 $0

b.$106,200 $11,700

c.$94,500 $0

d.$94,500 $11,700