1.

2.The Bronco Corporation exchanged land for equipment. The land had a book value of $127,000 and a fair value of $164,000. Bronco received $17,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange.

3.The Bronco Corporation exchanged land for equipment. The land had a book value of $139,000 and a fair value of $188,000. Bronco paid the owner of the equipment $29,000 to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange.

4.Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,700,000. According to independent appraisals, the fair values were $810,000 (building A) and $360,000 (building B) for the buildings and $630,000 for the land. Required: Determine the initial valuation of the buildings and the land.

Land=

Building A=

Building B=

Total=

5.

Delaware Company incurred the following research and development costs during 2021: Salaries and wages for lab research Materials used in R&D projects Purchase of equipment Fees paid to third parties for R&D projects Patent filing and legal costs for a developed product Salaries, wages, and supplies for R&D work performed for another company under a contract Total $ 490,000 290,000 990,000 410,000 74,000 440,000 $2,694,000 The equipment has a six-year life and will be used for a number of research projects. Depreciation for 2021 is $210,000. Required: Calculate the amount of research and development expense that Delaware should report in its 2021 income statement. Research and development expense On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,300,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $ 6,300,000 11,300,000 1,030,000 4,300,000 6,300,000 Fair Value $ 7,800,000 14,300,000 1,530,000 4,300,000 5,800,000 Required: Calculate the amount paid for goodwill. Goodwill