Nabokov Company exchanges assets with Faulkner Company. Nabokov exchanges equipment with a book value of $ 25,000

Question:

Nabokov Company exchanges assets with Faulkner Company. Nabokov exchanges equipment with a book value of $ 25,000 and fair market value of $ 40,000 for Faulkner’s land with a cost of $ 7,500 and fair market value of $ 38,000. Faulkner also paid Nabokov $ 2,000 in cash. Compute Nabokov’s cost of the land acquired and any gain or loss on the exchange.