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 expires . What amount should Glen record as a capitalized leased asset at inception of the lease ?
Question 15
Scott Co . exchanged nonmonetary assets with Dale Co . No cash was exchanged . There is commercial substance to the exchange . The carrying amount of the asset surrendered by Scott exceeded both the fair value of the asset received and Dale ' s carrying amount of that asset . Scott should recognize the difference between the carrying amount of the asset it surrendered and
Question 16
Lease A does not contain a purchase option , but the lease term is equal to 90 percent of the estimated economic life of the leased property . Lease B does not transfer ownership of the property to the lessee by the end of the lease term , but the lease term is equal to 75 percent of the estimated economic life of the leased property . How should the lessee classify these leases ?