Vik Auto and King Clothier exchanged goods, held for resale,
with equal fair values. Each will use the other’s goods to
promote their own products. The retail price of the car that Vik
gave up is less than the retail price of the clothes received. Assuming
the transaction has commercial substance, what profit
should Vik recognize for the nonmonetary exchange?

(d) Nonmonetary exchanges of assets that are deemed
to have commercial substance are accounted for on the basis of
fair values, and both gains and losses recognized. The gain (or
loss) for Vik is calculated as the difference between the fair value
and cost of the car. Note that the retail/list price of an asset is not
always representative of the fair value of the asset. An asset can
often be purchased for less than the retail/list price.