Response to the following problem:
Kim Company exchanges assets with Chero Company. Kim Company exchanges equipment with a book value of $25,000 and fair market value of $40,000 for Chero Company's land with a cost of $7,500 and fair market value of $38,000. Chero Company also paid Kim Company $2,000 in cash. Compute Kim Company's cost of the land acquired and any gain or loss on the exchange.