[NinaSun]

Bensol Co. and Sable Co. exchanged similar trucks with fair values in excess of carrying amounts in an exchange that lacks commercial substance under U.S. GAAP. In addition, Bensol paid Sable to compensate for the difference in truck values. As a consequence of the exchange, Sable recognizes:

a. Neither a gain nor a loss

b. A loss determined by the proportion of cash received to the total consideration.

c. A gain equal to the difference between the fair value and carrying amount of the truck given up.

d. A gain determined by the proportion of cash received to the total consideration.

The answer is “d”. The explanation says “the cash appears to be a minor part of the total consideration”. My question is how to tell this from this question. I was wandering between “c” and “d”. Thanks.

AUD-74,75 11/2014
REG-80 04/2015
FAR-74, 91 11/2015
BEC-79 08/2015