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Sheridan Inc. and Pharoah Co. have an exchange with no commercial substance. The asset given up by Sheridan Inc. has a book value of $58500

Sheridan Inc. and Pharoah Co. have an exchange with no commercial substance. The asset given up by Sheridan Inc. has a book value of $58500 and a fair value of $93500. The asset given up by Pharoah Co. has a book value of $123500 and a fair value of $108500. Boot of $15000 is received by Pharoah Co. What amount should Pharoah Co. record for the asset received?

$123500

$73500

$93500

$108500

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