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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