Bloomington Inc. exchanged land for equipment and $3,000 in cash. The book value and the fair value of the land were $104,000 and $90,000, respectively. Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss) of:

Question

Quizplus · Accepted Answer

$$\begin{array} { | l | r | l | } 
\hline \text { Equiprnent } ( F V \text { of land } - \$ 3,000 ) & 87,000 & \
\hline \text { Cash } & \mathbf { 3 , 0 0 0 } & \
\hline \text { Loss } ( \$ 104,000 - 90,000 ) & 14,000 & \
\hline \text { Land (book value) } & & 104,000 \
\hline
\end{array}$$