1. Washington Co. exchanged nonmonetary assets with Stranger Co. No cash was exchanged and the exchange had no commercial substance. The carrying amount of the asset surrendered by Washington exceeded. Both the fair value of the asset received and Strangers carrying amount of that asset. Washington should recognize the difference between the carrying amount of the asset it surrendered and

a. The fair value of the asset it received as a loss.

b. The fair value of the asset it received as a gain.

c. Strangers carrying amount of the asset it received as a loss.

d. Strangers carrying amount of the asset it received as a gain.

2. Charles County owned an idle parcel of real estate consisting of land and a factory building. Charles gave title to this realty to Parson Co. as an incentive for Parson to establish manufacturing operations in the county. Parson paid nothing for this realty, which had a fair value of $250,000 at the date of the grant. Parson should record this nonmonetary transaction as a

a. Memo entry only

b. Credit to Contribution Revenue for $250,000

c. Credit to Comprehensive Income for $250,000

d. Credit to Donated Capital for $250,000

3. On September 10, 2015, Jenks Co. incurred the following costs for one of its printing presses:

Purchase of attachment $55,000

Installation of attachment $5,000

Replacement parts for renovation of press $18,000

Labor and overhead in connection with renovation of press $7,000

Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized?

a. $0

b. $67,000

c. $78,000

d. $85,000

4. On February 2, 2016, Yarley Corp. replaced its boiler with a more efficient one. The following information was available on that date:

Purchase price of new boiler $150,000

Carrying amount of old boiler $10,000

Fair value of old boiler $4,000

Installation cost of new boiler $20,000

The old boiler was sold for $4,000. What amount should Yarley capitalize as the cost of the new boiler?

a. $170,000

b. $164,000

c. $160,000

d. $150,000