Vik Auto and King Clothier exchanged goods, held for resale, with equal fair values. Each will use the other’s goods to promote their own products. The retail price of the car that Vik gave up is less than the retail price of the clothes received. Assuming the transaction has commercial substance, what profit should Vik recognize for the nonmonetary exchange?

a. A profit is not recognized.

b. A profit equal to the difference between the retail prices of the clothes received and the car.

c. A profit equal to the difference between the retail price and the cost of the car.

d. A profit equal to the difference between the fair value and the cost of the car.