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Ronald exchanged similar assets with Silver Company in a transaction WITHOUT commercial substance. Ronald gave up equipment that had a net book value of $47,000

Ronald exchanged similar assets with Silver Company in a transaction WITHOUT commercial substance. Ronald gave up equipment that had a net book value of $47,000 (fair value $49,000) and Silver exchanged equipment with a net book value of $36,000 (fair value $35,000). What is the correct value at which Ronald should record the newequipment?

A. 47,000

B. 36,000

C. 49,000

D. 35000

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