Peter Exchanged Similar Assets with Sunshine Company in a Transaction

Peter exchanged similar assets with Sunshine Company in a transaction without commercial substance. Peter gave up equipment that had a net book value of $47,000 (fair value $49,000) and Sunshine exchanged equipment with a net book value of $36,000 (fair value $35,000) . What is the correct value at which Sunshine should record the new equipment?

A) $35,000
B) $36,000
C) $47,000
D) $49,000