1/ Alamos Co. exchanged equipment and $17,600 cash for similar equipment. The book value and the fair value of the old equipment were $80,400 and $91,200, respectively.

Assuming that the exchange lacks commercial substance, Alamos would record a gain/(loss) of:

Multiple Choice

• $ 0.

• $28,400.

• $ 10,800.

• $(10,800).

2/ On July 1, 2018, Larkin Co. purchased a $450,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2018 as follows:

Demolition of existing building on site	$	78,000
Legal and other fees to close escrow		13,600
Proceeds from sale of demolition scrap		8,200

What would be the balance in the land account as of December 31, 2018?

Multiple Choice

• $528,000.

• $533,400.

• $450,000.

• $541,600.

3/ Broadway Ltd. purchased equipment on January 1, 2016, for $600,000, estimating a 6-year useful life and no residual value. In 2016 and 2017, Broadway depreciated the asset using the straight-line method. In 2018, Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2018 on this equipment? (Do not round your depreciation rate.)

Multiple Choice

• $80,000.

• $100,000.

• $200,000.

• $160,000.

4/ Canliss Mining uses the replacement method to determine depreciation on its office equipment. During 2016, its first year of operations, office equipment was purchased at a cost of $23,000. Useful life of the equipment averages four years and no salvage value is anticipated. In 2018, equipment costing $5,300 was sold for $450 and replaced with new equipment costing $6,300. Canliss would record 2018 depreciation of:

Multiple Choice

• $3,650.

• $4,850.

• $5,850.

• None of these answer choices are correct.