Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming that the exchange lacks commercial substance, Horton would record land-new and a gain/(loss) of:

Question

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$\begin{array}{|l|c|c|}
\hline \text { Land-new (BV of old land }+\$ 5,000) & 95,000 & \
\hline \text { Cash } & & 5,000 \
\hline \text { Land-old (book value) } & & 90,000\\hline
\end{array}$

Horton Stores Exchanged Land and Cash of $5,000 for Similar