Highway Roberts Company owned equipment that had an original cost of $2M, a fair value of $1.4M and book value of $800,000 On September 3, 2011, Highway exchanged this equipment with Freeway Insurance for equipment carried on Freeway's books for $950,000 (original cost of $1.6M). Freeway gave Highway $140,000 cash to complete the exchange. Assume the exchange has commercial substance. How much gain or loss should Highway record on the transaction (if any)? a. Gain $600,000 b. Loss $600,000 Tess (1). GLOSS $660,000 d. Gain $660,000