Rebby Company Received $60, 000 in Cash and Used Equipment

Rebby Company received $60, 000 in cash and used equipment with a fair value of $140, 000 from Farley Corporation for Rebby's existing equipment, which had a fair value of $200, 000 and an undepreciated cost of $170, 000 recorded on its books.The transaction was undertaken because Rebby was revising its market strategy and planned to reduce the use of this type of equipment in its production.How much gain should Rebby recognize on this exchange, and at what amount should the acquired equipment be recorded, respectively?

A) 0 and $150, 000
B) $ 3, 000 and $143, 000
C) $20, 000 and $170, 000
D) $30, 000 and $140, 000