Vaughn Football Co. had a player contract with Watts that is recorded in its books at $8420000 on July 1, 2020. Cullumber Football Co. had a player contract with Kurtz that is recorded in its books at $11100000 on July 1, 2020. On this date, Vaughn traded Watts to Cullumber for Kurtz and paid a cash difference of $1110000. The fair value of the Kurtz contract was $12600000 on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded in Vaughn's books at

$11100000.

$12600000.

$9530000.

$12210000.