In an exchange of assets that is deemed to lack commercial substance, Transit Co. received equipment with

Fantastic news! We've Found the answer you've been seeking!

Question:

In an exchange of assets that is deemed to lack commercial
substance, Transit Co. received equipment with a fair value equal
to the carrying amount of equipment given up. Transit also contributed
cash. As a result of the exchange, Transit recognized

A loss equal to the cash given up.
A loss determined by the proportion of cash paid to the
total transaction value.
A gain determined by the proportion of cash paid to the
total transaction value.Neither gain nor loss.