Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair value PaidCase A $50,900 59,600 $15,000 Case B $39,900 $35,200 8,300 In Case B, Grand Forks would record a gain/(loss) of: a. $(3,600). b. $ 3,600.

Debit:

Equipment (35,200 + 8300) =$43,500

Loss (39900 - 35200) =$4,700

Credit:

Cash =$8300

Equipment-old (BV) =$39900

Grand Forks would record a gain/(loss) of $4,700

Explanation:

The solution can be presented on a general journal as given below

General Journal                                   Debit                   Credit

Equipment (35,200 + 8300)              $43,500

Loss (39900 - 35200)                       $4,700

Cash                                                                                   $8300

From the journal prepared above, Grand Forks would record a gain/(loss) of $4,700