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Sheffield Inc. and Ivanhoe Co. have an exchange with no commercial substance. The asset given up by Sheffield Inc. has a book value of $61500

Sheffield Inc. and Ivanhoe Co. have an exchange with no commercial substance. The asset given up by Sheffield Inc. has a book value of $61500 and a fair value of $96500. The asset given up by Ivanhoe Co. has a book value of $126500 and a fair value of $122000. Boot of $25500 is received by Ivanhoe Co. What amount should Sheffield Inc. record for the asset received?

$87000

$126500

$96500

$122000

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