2004 of $ 420,000 had suffered permanent impairment , and as a result should have a carrying value of only $ 300,000 as of the beginning of the year . In addition , the remaining useful life of the equipment was reduced from 8 years to 3 . In its December 31 , 2004 balance sheet , what amount should Gei report as accumulated depreciation ?
Question 11
Dahl Co . traded a delivery van and $ 5,000 cash for a newer van owned by West Corp . Assume there is no commercial substance to the exchange . The following information relates to the values of the vans on the exchange date : Dahl ' s income tax rate is 30 %. What amounts should Dahl report as gain on exchange of the vans ?
Question 12
On July 1 , 2004 , Balt Co . exchanged a truck for 25 shares of Ace Corp .' s common stock . Assume commercial substance . On that date , the truck ' s carrying amount was $ 2,500 , and its fair value was $ 3,000 . Also , the book value of Ace ' s stock was $ 60 per share . On December 31 , 2004 , Ace had 250 shares of common stock outstanding and its book value per share was $ 50 . What amount should Balt report in its December 31 , 2004 , balance sheet as investment in Ace ?
Question 13
On December 31 , 2004 , a building owned by Carr , Inc . was destroyed by fire . Carr paid $ 12,000 for removal and cleanup costs . The building had a book value of $ 250,000 and a fair value of $ 280,000 on December 31 , 2004 . What amount should Carr use to determine the gain or loss on this involuntary conversion ?
Question 14
On July 1 , 2005 , Glen Corp . leased a new machine from Ryan Corp . The lease contains the following information : No bargain purchase option is provided , and the machine reverts to Ryan when the lease