Use the following information to answer Questions 24 and 25. Equipment that cost $55,000 and has accumulated depreciation of S25,000 is exchanged in a transaction that is considered to lack commercial substance for equipment with a fair value of $40,000 and $10,000 cash is received. 24. The gain to be recognized from the exchange is: (a) S5,000. (b) S0 (c) 4,000. (d) $20,000. 25. The new equipment should be recorded at: (a) $40,000 (b) $30,000. (c) $25,000. (d) $34,000