n November 18, Redding Corp. purchased a building by transferring $1,000,000 cash and land to another company. The land given up had an original cost and book value of $3,000,000 and a fair market value of $5,000,000. Directions: On your scrap paper, prepare the journal entry to record this exchange assuming it has commercial substance. Next, answer the two questions below. Question #1: What should be the capitalized cost of the new building when Redding records the transaction? Answer: $Answer 1 Question 13 Question #2: In the entry to record this exchange from Redding's perspective, how much gain or loss should be recognized? Answer: They should recognize a Answer 2 Question 13 of $Answer 3 Question 13