A building with an appraisal value of $128,606 is made available at an offer price of $154,768. The purchaser acquires the property for $39,647 in cash, a 90-day note payable for $20,551, and a mortgage amounting to $55,273. The cost basis recorded in the buyer's accounting records to recognize this purchase is

a.$128,606

b.$154,768

c.$115,471

d.$115,121

A new machine with a purchase price of $86,381, with transportation costs of $7,486, installation costs of $6,217, and special acquisition fees of $2,385, would have a cost basis of

a.$102,469

b.$92,598

c.$94,983

d.$86,381

An asset was purchased for $150,000 on January 1, Year 1 and originally estimated to have a useful life of 12 years with a residual value of $11,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $3,000. Calculate the third-year depreciation expense using the revised amounts and straight-line method.

a.$31,458.33

b.$29,958.33

c.$31,958.33

d.$30,958.33

A fixed asset with a cost of $51,478 and accumulated depreciation of $43,756.30 is traded for a similar asset priced at $64,557. Assuming a trade-in allowance of $3,855, the recognized loss on the trade is

a.$20,800.70

b.$3,866.70

c.$3,855.00

d.$7,721.70