Toyota Motor Corp. gave land away and received equipment and $3,000 cash in exchange. The book value and the fair value of the land were $104,400 and $88,100, respectively. Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss) on exchange of assets in the amounts of:

	Equipment				Gain/(loss)
a.	$	85,100			$	3,000
b.	$	104,400			$	(3,000	)
c.	$	85,100			$	(16,300	)
d.	None of these answer choices are correct.

Multiple Choice

• Option A

• Option B

• Option C

• Option D