Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the others land. They agree to exchange their land. An appraiser was hired, and from her report and the companies' records, the following information was obtained: Hager's Land Shaw's Land $576,000 $360,000 720,000 630,000 Cost and book value Fair value based upon appraisal The exchange was made, and based on the difference in appraised fair values, Shaw paid $90,000 to Hager. The exchange lacked commercial substance Assume the exchange lacked commercial substance 30, For financial reporting purposes, Hager should recognize a gain on this exchange of a. $o. b$12,000 e.$60,000 .$96,000 31The new land should be recorded on Hager's books at a $336,000. b. $384,000. c. $420,000. d. $480,000. 32.Shaw should recognize a. A gain of $180,000 b. A gain of $120,000 c. A loss of $180,000 d. No gain or loss 33. The new land should be recorded on Shaw's books at a. $240,000. b. $300,000. c. $420,000. d. $480,000 Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the others land. They agree to exchange their land. An appraiser was hired, and from her report and the companies' records, the following information was obtained: Hager's Land Shaw's Land $576,000 $360,000 720,000 630,000 Cost and book value Fair value based upon appraisal The exchange was made, and based on the difference in appraised fair values, Shaw paid $90,000 to Hager. The exchange lacked commercial substance Assume the exchange lacked commercial substance 30, For financial reporting purposes, Hager should recognize a gain on this exchange of a. $o. b$12,000 e.$60,000 .$96,000 31The new land should be recorded on Hager's books at a $336,000. b. $384,000. c. $420,000. d. $480,000. 32.Shaw should recognize a. A gain of $180,000 b. A gain of $120,000 c. A loss of $180,000 d. No gain or loss 33. The new land should be recorded on Shaw's books at a. $240,000. b. $300,000. c. $420,000. d. $480,000