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Problem 1: Iona Co. and Siena Co. exchanged goods held for resale with equal fair values. Each will use the other's goods to promote its own products. The retail price of the wickets that Iona gave up is less than the retail price of the wombles received. What gain should Iona recognize on the nonmonetary exchange?
option 1: A gain equal to the difference between the retail price and the cost of the wickets. option 2: A gain is not recognized. option 3: A gain equal to the difference between the retail prices of the wombles received and the wickets. option 4: A gain equal to the difference between the fair value and the cost of the wickets.
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