An entity acquired an item of plant in exchange for an item of equipment. The equipment has a carrying value of $5000 and a fair value of $6000. The journal entry to record the acquisition of the plant will show:
A) a loss on acquisition of $1000.
B) proceeds on sale of equipment of $1000.
C) a gain on sale of $1000.
D) proceeds on sale of plant of $1000.
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