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 expires. What amount should Glen record as a capitalized leased asset at inception of the lease?
Question 15