1.Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $36,000 (original cost of $89,000 less accumulated depreciation of $53,000) and $48,000, respectively. Assume Calaveras paid $7,000 in cash and the exchange lacks commercial substance.

At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange?

Value of Pick Up Trucks=

Gain/Loss=

2.Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $31,000 (original cost of $81,500 less accumulated depreciation of $50,500) and $22,500, respectively. Assume Calaveras paid $8,500 in cash and the exchange has commercial substance.

At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange?

Value of Pick Up Trucks=

Gain/Loss=

3.Pro-tech Software acquired all of the outstanding stock of Reliable Software for $17 million. The book value of Reliables net assets (assets minus liabilities) was $8.6 million. The fair values of Reliables assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.8 million. Calculate the amount paid for goodwill.

4.Fullerton Waste Management purchased land and a warehouse for $610,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition: brokers commission, $31,000; title insurance, $3,500; miscellaneous closing costs, $6,500. The warehouse was immediately demolished at a cost of $19,000 in anticipation of the building of a new warehouse. Determine the amounts Fullerton should capitalize as the cost of the land and the building.

Capatalized Cost Of Land=

Capatalized Cost of Buidling =

5.

A company purchased land, a building, and equipment for one price of $1,550,000. The estimated fair values of the land, building, and equipment are $193,750, $1,356,250, and $387,500, respectively. At what amount would the company record the land?

• $193,750

• $155,000

• $1,550,000

• $165,000