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 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