Reporting an Asset Exchange Two independent companies, Bevine and Shalton, are in the home-building business. Each owns a tract of land for development, but each company prefers to build on the other's land. Accordingly, they agree to exchange their land. An appraiser is hired, and from the appraiser report and the companies' records, the following information is drawn. Bevine Co.'s Land Shalton Co.'s Land Cost (same as book value) $80,000 $50,000 Fair value based on appraisal 100,000 90,000 The exchange of land is made. Based on the difference in appraised values, Shalton also pays $10,000 cash to Bevine. The transaction lacks commercial substance. 2000 0 a. For financial reporting purposes, what does Bevine recognize as a pretax gain on this exchange? $ b. For financial reporting purposes, what does Shalton recognize as a pretax gain on this exchange? $ c. After the exchange, at what value does Bevine record its newly acquired land? $ d. After the exchange, at what value does Shalton record its newly acquired land? $ 60000