Colt Football Co

Colt Football Co.had a player contract with Watts that is recorded in its books at $3,600,000 on July 1, 2010.Day Football Co.had a player contract with Kurtz that is recorded in its books at $4,500,000 on July 1, 2010.On this date, Colt traded Watts to Day for Kurtz and paid a cash difference of $450,000.The fair value of the Kurtz contract was $5,400,000 on the exchange date.The exchange had no commercial substance.After the exchange, the Kurtz contract should be recorded in Colt's books at

A) $4,050,000.
B) $4,500,000.
C) $4,950,000.
D) $5,400,000.