11.On January1, 2018,Sanderson, Inc. acquired a machine for $1,090,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $120,000. What is the book value of the machine at the end of 2019 if the company uses the straight line method ofdepreciation?

A.

$702,000

B.

$653,996

C.

$654,000

D.

$582,000

12.A machine that was purchased for $ 110 comma 000

$110,000 has accumulated depreciation of $ 80 comma 000

$80,000. The business exchanges the machine for a new one. The new machine has a market value of $ 130 comma 000

$130,000, and the business pays $ 110 comma 000

$110,000 cash. Assume the exchange has commercial substance. This exchange results in a________.

A. loss of $30,000

B. loss of $10,000

C. gain $5,000

D. gain $10,000