Meteor Motor Sales exchanged a car from its inventory for a computer to be used as a noncurrent operating asset. The following information relates to this exchange that took place on July 31 . 2014: Carrying amount of the car ............................ $30,000 Listed selling price of the car ....................... 45,000 Fair value of the computer ............................ 43,000 Cash
difference paid by Meteor ........................ 5,000 The exchange has commercial substance. On July 31 . 2014, how much profit should Meteor recognize on this exchange?
a. $0
b. $8,000
c. $10,000
d. $13,000
B
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