2-

A machine that was purchased for $120,000 has accumulated depreciation of $90,000. The business exchanges the machine for a new one. The new machine has a market value of $130,000, and the business pays $120,000 cash. Assume the exchange has commercial substance. This exchange results in a ________.

A. gain of $10,000

B.loss of $30,000

C. loss of $20,000

D gain of $20,000

3- During 2018, Landers Corp. had net sales of $17,000,000. The beginning total assets were $8,300,000. The asset turnover ratio was 1.6 times. Calculate the ending total assets of Landers. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A.

$8,300,000

B.$12,950,000

C.$14,675,000

D.$6,375,000