Question: Candy Co. exchanged inventory with Dandy Co. in a transaction that lacks commercial substance. Both Candys and Dandys inventory had fair values that exceeded their

Candy Co. exchanged inventory with Dandy Co. in a transaction that lacks commercial substance. Both Candys and Dandys inventory had fair values that exceeded their costs by 30%. Since Dandys inventory was more valuable, however, Candy paid Dandy cash to compensate for the difference. Who, if anyone, will recognize a gain on the exchange? a. Candy only b. Dandy only c. Both Candy and Dandy d. Neither Candy nor Dandy

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