Use the Following Information for Questions

question 37

Multiple Choice

Use the following information for questions.
Two independent companies, Hager Co.and Shaw Co., are in the home building business.Each owns a tract of land held for development, but each would prefer to build on the other's land.They agree to exchange their land.An appraiser was hired, and from her report and the companies' records, the following information was obtained:
The exchange was made, and based on the difference in appraised fair values, Shaw paid $10,000 to Hager.The exchange has commercial substance.
-For financial reporting purposes, Hager should recognize a gain on this exchange of

• A)$0.
• B)$28,000.
• C)$10,000.
• D)$90,000.

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Definitions:

Divorce

The legal dissolution of a marriage by a court or other competent body, officially ending the relationship.

Divorce rates

The statistical measure of the number of divorces occurring within a defined population during a given time period.

Stepchildren

Children of one's spouse from a previous relationship.

Stepgrandchildren

Children of one's stepchildren, not biologically related but part of the extended family structure through marriage or partnerships.