The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $32,500. According to an independent appraisal, the land currently is worth $77,000. Tinsley gave $19,000 in cash to complete the transaction.

Required:

What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance

Record the exchange of land assuming the exchange has commercial substance.(journal entry)

Record the exchange of land assuming the exchange lacks commercial substance.