1- Happy Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $160,000 and accumulated depreciation of $80,000. The fair market value of the old sailboat was $42,000. The company paid $200,000 in addition to the old sailboat to acquire the new sailboat. If this transaction has commercial substance, what is the loss that should be recorded on this exchange?

2-

Use the following information to calculate the net cash provided (inflow) or used by (outflow) from operating activities for the STAR Corporation:

(a) Net income, $40,000

(b) Depreciation and amortization $ 12,000

(c) Loss on sale of equipment $ 2,000

(d) Gain on selling investments $26,000

(e) Increase in accounts receivable $ 6,000

(f) Decrease in Accounts payable $ 2,500

(g) Issuance of common stock $ 60,000