I know the answer is C.

Please, correct me when Im wrong.

When the exchange lacks commercial substance...

If a FV of asset exchanged is higher then BV of asset exchanged we use BV (which is lower than FV) as a cost basis of the aquired asset. Am I right?

Why then in this case we use FV of asset recereived? Cause this is more evident? and if we wouldnt know FV of received asset would we compute the cost of that new asset received as the BV of 450000 of asset given up (because BV in tat case lower that FV) Plus any cash received?

Hardin Company received $120,000 in cash and a used computer with a fair value of $360,000 from Page Corporation for Hardin Company's existing computer having a fair value of $480,000 and an undepreciated cost of $450,000 recorded on its books. The transaction has no commercial substance. How much gain should Hardin recognize on 96. this exchange, and at what amount should the acquired computer be recorded, respectively? a. $0 and $330,000 b. $1,537 and $221,537 c. $30,000 and $360,000 d. $120,000 and $450,000