Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract of land being held for development, but each company would prefer to build on the other's land. Accordingly, they agree to exchange their land, and have the following information:

	Harglo's Land	Kalman's Land
Cost and book value	$160,000	$100,000
Fair value based upon appraisal	$200,000	$170,000

The exchange of land was made, and, based on the difference in appraised fair value, Kalman paid $30,000 cash to Harglo. a)

For financial reporting purposes, Harglo would recognize a gain on this exchange in the amount of

a.	$0
b.	$6,000
c.	$20,000
d.	$40,000

b)

For financial reporting purposes, Kalman would recognize a gain on this exchange in the amount of

a.

$0

b.

$20,000

c.

$30,000

d. $60,000 c)

After the exchange, Harglo would record its newly acquired land on its books at

a.	$ 90,000
b.	$102,000
c.	$136,000
	d. $166,000 Please explain the answer. Thank you.