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Question - D & D exchanged an asset with a book value of $10,000 and paid $1,000 in cash for a another asset from W & W Company with a book value of $10,300. The fair value of the given asset was $9,500 and the new asset was $10,500. Calculate the gain or loss to be recognized by D & D. Assume commercial substance.
A. $10,500
B. 9,500
C. 11,500
D. None of the above
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