Question: Salad Express exchanged land it had been holding for future plant expansion for a more suitable parcel of land along distribution routes. Salad Express reported the old land on the previously issued balance sheet at its original cost of $60,000. According to an independent appraisal, the old land currently is worth $112,000. Salad Express paid $14,000 in cash to complete the transaction.
Required: 1. What is the fair value of the new parcel of land received by Salad Express?
2. Record the exchange.