Calaveras tire exchanged machinery for two pickup trucks, Ask an Expert

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Calaveras Tire exchanged machinery for two pickup trucks. The book value and fair value of the machinery were $40,000 (original cost of $95,000 less accumulated depreciation of $55,000) and $27,000, respectively. To equalize fair values, Calaveras paid $9,000 in cash.
At what amount will Calaveras value the pickup trucks?

Assume the exchange has commercial substance. How much gain or loss will the company recognize on the exchange?

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