Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance.

Old Equipment

Book Value Fair Value Cash Received

Equipment A $ 75,000 $ 81,100 $ 11,400

Equipment B $ 61,700 $ 55,300 $ 10,400

For Equipment A, Pensacola would record the new equipment at:

Multiple Choice

$69,700.

$71,200.

$73,950.

$57,200.