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| In an exchange of assets that is deemed to lack commercial substance, Transit Co. received equipment with a fair value equal to the carrying amount of equipment given up. Transit also contributed cash. As a result of the exchange, Transit recognized A. A loss equal to the cash given up. B. A loss determined by the proportion of cash paid to the total transaction value. C. A gain determined by the proportion of cash paid to the total transaction value. D. Neither gain nor loss. |
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