Question 1 (1 point) Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Old Equipment Cash Book Value Fair Value Received Equipment A $75,000 $80,000 $12,000 Equipment B $60,000 $56,000 $10,000 For Equipment A. Pensacola would record the new equipment at: $68.000 $63.250. $67.250. $80,000 Question 2 (1 point) P. Chang & Co. exchanged land and $9,000 cash for equipment. The book value and the fair value of the land were $106,000 and $90.000 respectively, Assuming that the exchange has commercial substance. Chang would record equipment and a gain (loss) of Equipment Gain/(loss) a. $ 99,900 $ (16,000) b. $ 90,000 $ (25,000) $108,000 $ 16,000 d. $196,000 $ (9,000) Option A Option B Option C Option D Question 3 (1 point) Adding a refrigeration unit to a delivery truck that previously did not have this capability is an example of: O Repairs and maintenance. Improvement Rearrangement. Addition