6.

Alamos Co. exchanged equipment and $17,600 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,600, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of:

7. Alamos Co. exchanged equipment and $17,900 cash for similar equipment. The book value and the fair value of the old equipment were $81,800 and $91,100, respectively. Assuming that the exchange lacks commercial substance, Alamos would record a gain/(loss) of:

8.

Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $88,100 and $101,800, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) of:

Land

Gain/(loss)

a.

$

106,800

$

0

b.

$

106,800

$

13,700

c.

$

93,100

$

0

d.

$

93,100

$

13,700

A. option A B. option B C. option C D. option D

9.

Horton Stores exchanged land and cash of $4,900 for similar land. The book value and the fair value of the land were $88,400 and $101,700, respectively. Assuming that the exchange lacks commercial substance, Horton would record land-new and a gain/(loss) of:

Land

Gain/(loss)

a.

$

106,600

$

0

b.

$

106,600

$

13,300

c.

$

93,300

$

0

d.

$

93,300

$

13,300

A. option A B. option B C. option C D. option D

10.

Bloomington Inc. exchanged land for equipment and $3,700 in cash. The book value and the fair value of the land were $104,100 and $88,500, respectively. Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss) of:

	Equipment				Gain/(loss)
a.	$	84,800			$	3,700
b.	$	104,100			$	(3,700	)
c.	$	84,800			$	(15,600	)
d.	None of these answer choices are correct.

A. option A B. option B C. option C D. option D