Question
7. Bramble Corp.traded machinery with a book value of $1137700and a fair value of $1835000. It received in exchange fromCullumber Companya machine with a fair
7. Bramble Corp.traded machinery with a book value of $1137700and a fair value of $1835000. It received in exchange fromCullumber Companya machine with a fair value of $1737000and cash of $193000.Cullumber's machine has a book value of $1823850. What amount of gain shouldBramblerecognize on the exchange (assuming lack of commercial substance)?
8. Marigold Corp.traded machinery with a book value of $969900and a fair value of $915000. It received in exchange fromCullumber Companya machine with a fair value of $1024800.Marigoldalso paid cash of $102480in the exchange.Cullumber's machine has a book value of $969900. What amount of gain or loss shouldMarigoldrecognize on the exchange (assuming lack of commercial substance)?
9. Equipment that cost $541,200and has accumulated depreciation of $246,000is exchanged for equipment with a fair value of $393,600and $98,400cash is received. The exchange lacked commercial substance.
14.Bramble Corp.purchased machinery for $920,000on January 1, 2017. Straight-line depreciation has been recorded based on a $59,500salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $13,000. How much cash didBramblereceive from the sale of the machinery?
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