2. A building with an appraisal value of $128,245 is made available at an offer price of $156,710. The purchaser acquires the property for $35,166 in cash, a 90-day note payable for $24,873, and a mortgage amounting to $50,551. The cost basis recorded in the buyer's accounting records to recognize this purchase is

a.$128,245

b.$156,710

c.$110,590

d.$121,544

4. On December 31, Strike Company sold one of its batting cages for $50,000. The equipment had an original cost of $310,000 and has accumulated depreciation of $260,000. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?

a.gain of $50,000

b.no gain or loss

c.loss of $50,000

d.Cannot be determined.

6.

Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are

a.$49,000

b.$49,750

c.$51,000

d.$47,000