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27)Huff Co. exchanged nonmonetary assets with Sayler Co. No cash
was exchanged and the exchange had no commercial substance. The
carrying amount of the asset surrendered by Huff exceeded both the
fair value of the asset received and Sayler's carrying amount of that
asset. Huff should recognize the difference between the carrying
amount of the asset it surrendered and
28) A machine cost $600,000, has annual depreciation of $100,000,
and has accumulated depreciation of $450,000 on December 31,
2014. On April 1, 2015, when the machine has a fair value of
$137,500, it is exchanged for a machine with a fair value of $675,000
and the proper amount of cash is paid. The exchange had commercial
substance.
The gain to be recorded on the exchange is
29) Glen Inc. and Armstrong Co. have an exchange with no
commercial substance. The asset given up by Glen Inc. has a book
value of $36,000 and a fair value of $45,000. The asset given up by
Armstrong Co. has a book value of $60,000 and a fair value of
$57,000. Boot of $12,000 is received by Armstrong Co.
What amount should Glen Inc. record for the asset received?
30) Glen Inc. and Armstrong Co. have an exchange with no
commercial substance. The asset given up by Glen Inc. has a book
value of $36,000 and a fair value of $45,000. The asset given up by
Armstrong Co. has a book value of $60,000 and a fair value of
$57,000. Boot of $12,000 is received by Armstrong Co.
What amount should Glen Inc. record for the asset received?
31) Arlington Company is constructing a building. Construction
began on January 1 and was completed on December 31.
Expenditures were $4,800,000 on March 1, $3,960,000 on June 1,
and $6,000,000 on December 31. Arlington Company borrowed
$2,400,000 on January 1 on a 5-year, 12% note to help finance