P. Chang & Co. exchanged land and $8,600 cash for equipment. The book value and the fair value of the land were $106,100 and $88,300, respectively.

Chang would record equipment and a gain/(loss) of:

Equipment

Gain/(loss)

$106,100

$(8,600).

$106,100

$(17,800).

$96,900

$(17,800).

$88,300

$(26,400).