11) Equipment that cost $1,400,000 and has accumulated depreciation of $600,000 is exchanged for equipment with a fair value of $960,000 and $40,000 cash is paid. The exchange has commercial substance. The asset should be recorded on the books of the company at?

12) On January 1, 2015, Delta Corporation purchased for $800,000, equipment having a useful life of ten years and an estimated salvage value of $50,000. Delta has recorded monthly depreciation of the equipment on the straight-line method. On October 1, 2020, the equipment was sold for $140,000. As a result of this sale, Delta should recognize a gain/(loss) of?

13) Bravo Corporation purchased a truck at the beginning of 2020 for $300,000. The truck is estimated to have a salvage value of $18,000 and a useful life of 100,000 miles. It was driven 30,000 miles in 2020 and 42,000 miles in 2021. What is the depreciation expense for 2020?

14) Phantom Company purchased a depreciable asset for $300,000. The estimated salvage value is $30,000, and the estimated useful life is 10 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the third year on this asset?

15) A limited-life intangible asset is believed to be impaired. The recoverability test should be used to determine if there has been an impairment and the fair value test should be used to determine the amount of the impairment. (True/False)

16) Diamond Corporation, which has a calendar year accounting period, purchased a machine for $400,000 on April 1, 2016. At that time Diamond expected to use the machine for ten years and then sell it for $4,000. The machine was sold for $22,000 on Sept. 30, 2021. Assuming straight-line depreciation, calculate the gain(/(loss) at the sale of the machine.

17) Circle Company purchased an asset for $460,000 on April 1, 2018. The estimated salvage value is $60,000, and the estimated useful life is 10 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on October 1, 2022 when the asset is sold?

18) Montana Corporation owns machinery with a book value of $600,000. It is estimated that the machinery will generate future cash flows of $520,000. The machinery has a fair value of $480,000. Montana should recognize a loss on impairment of?

19) A company uses the sum-of-the-years-digits-method of depreciation. Accordingly, the depreciation expense will decrease by the same amount each year during the life of the asset. (True/False)

20) Spruce Corporation acquired a copyright on September 1, 2020. Spruce paid cash of $160,000 to the seller. Legal fees of $12,000 were paid related to the acquisition. What is the book value of the copyright at December 31, 2021 assuming that the copyright has a life of 20 years?