1. Company X has a machine with a book value of $10,000 and a fair value of $15,000. Company Y has a machine with a book value of $16,000 and a fair value of $14,000. Company X and Y exchange machines. In addition, Company X gives $1,000 to Company Y as a result of the exchange. The transaction is deemed to have commercial substance and the fair value measurement of the assets is equally reliable. Company X would record the machine acquired from Company Y at: Select one: a. $14,000. b. $15,000. c. $16,000 d. $10,000.

2.

Given the following amounts from an income statement: The amount shown on a multiple-step format income statement for operating income from continuing operations would be:

Select one:

a. $302

b. $290.

c. $246.

d. $232.

3. Under ASPE, foreign exchange translation gains or losses are charged to:

Select one:

a. separate component of Shareholder equity entitled "Cumulative Translations Gains and Losses"

b. net earnings.

c. retained earnings.

d. other comprehensive Income.

4. B owes C $3,000 per year, due over the next six years. However, C would prefer to have the cash now and wants to make an offer to B for settlement at this time. If you were B, to the nearest dollar what is the maximum you would be willing to pay (assuming you have the cash to pay) in settlement today if the current interest rate is 15 percent? (Assume the first payment is due one year from today.)

Select one:

a. $11,353

b. $13,787

c. $15,300

d. None of the above

b. net earnings.

c. retained earnings.

d. other comprehensive Income.