An old truck, which cost $49,500 and was two-thirds depreciated, was exchanged for a tractor with a fair value of $45.000, 530,000 cash was paid for the tractor. The exchange lacked commercial substance. At what amount should the tractor be recorded? Select one O a. $49,500 O b. $45,000 O . $46,500 O d. $48,000 O e $79,500 Given the following for the Illinois Company Date 01/13 Event Purchase Machine Savage: $2.000 Cost $14.000 5 year Me straight line Cost $4,000 No change in salvage 10/1/14 Addition to Machine Extends useful to 11/20 Depreciation expense for year-end 12/31/14 is approximately: Select one: 0 a $2,533 Ob $2.266 O c. $2.727 O d. $2,364 O e. $2,455 Knight Company purchased a new machine on May 1, 2014 for $98,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $8,000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2023, the machine was sold for $12,000. What should be the loss recognized from the sale of the machine? Select one: O a. No loss; a gain is realized Ob $1,800 O c $6,500 O d. $5,000 O e. $14,000 Which item is considered in the depreciation of an asset by the Units-of-Output method that is not considered by other methods? Select one: O a Salvage Value O b. Present Value of future cash flows O c. Amortized Cost O d. Amount of goods that the asset produces O e Cost of any improvements to the asset Net income is overstated if, in the first year, estimated salvage value is excluded from the depreciation computation when using which methods Select one: O a. Straight-line method and Units-of-Output method O b. Units-of-Output method, but not Straight-line method O c. Straight-line method, but not Units-of-Output method O d. Neither Straight-line nor Units-of-Output method