In 2017, Company A and Company B exchanged parcels of farmland.To complete the exchange, Company B paid Company A $150,000 cash.Information about the exchange is included below

Company A's Land

Company B's Land

Fair Market Value

$500,000

$350,000

Original Cost

$400,000

$190,000

Assuming commercial substance, provide the journal entry Company B would make to reflect the exchange. (2.5 points)

Assuming no commercial substance, determine the amount of the gain (loss) recognized by Company A for the exchange on its 2017 income statement. (2.5 points)

Assuming no commercial substance, determine the balance sheet amount at which Company A will report the land it received on the date of the exchange. (2.5 points)

In general, how does a company determine if an exchange has commercial substance? (2.5 points)