Answer the following intermediate accounting I questions 1-6: Thank you!
Jim Parra and Mary Lawson, maintenance repair workers, spent five days in unloading and setting up a new $6,000 precision machine in the plant. The wages earned in this five-day period, $480, are recorded A. Machine; Building O B. Machine; Repairs Expense C. Repairs expense; Building D. Expense; Expense BobCat equipment that has fair value of 300,000, cost $600,000 and has accumulated depreciation of $475,000 is exchanged for equipment with a fair value of $240,000 and $60,000 cash. The exchange lacked commercial substance. Pick the TRUE statement about the gain/loss recognized as well as the cost of new equipment recorded by BobCat Inc. A. DR Equipment 100,000 CR Gain 175,000 B. DR Equipment 240,000 CR Gain 175,000 C. DR Equipment 300,000 CR Gain 175,000 D. DR Equipment 300,000 CR Gain 35,000 E. DR Equipment 100,000 CR Gain 35,000 F. DR Equipment 240,000 CR Gain 35,000 Hoyle Company traded machinery with a book value of $760,000 and a fair value of $720,000. It received in exchange from Durler Company a machine with a fair value of $800,000. Hoyle also paid cash of $80,000 in the exchange. Durler's machine has a book value of $760,000. What amount of gain or loss should Hoyle recognize on the exchange (assuming lack of commercial substance)? A. 40,000 Loss B. 40,000 Gain C. 80,000 Loss D. 80,000 Gain .GikSmile Inc. and FunG Co. made exchange of assets with no commercial substance. GikSmile gave machinery with a book value of $51,000 and a fair value of $70,000. Equipment given by FunG Co. has book value of $90,000 and a fair value of $78,000. GikSmile Co. pays boot of $8,000 to FunG Co. GikSmile Inc. has the following cost basis for new equipment: A. 78,000 B. 59,000 C. 51,000 D. 72,000 GkSmile Inc. and FunG Co. made exchange of assets with no commercial substance. GikSmile gave machinery with a book value of $51,000 and a fair value of $70,000. Equipment given by FunG Co. has book value of $72,000 and a fair value of $78,000. GikSmile Co. pays boot of $8,000 to FunG Co. FunG Inc. has the following cost basis for new machinery: O A. 64,615 B. 70,000 C. 72,000 O D. 78,000 transaction had commercial substance. The old van cost $59,000 and had a $41,000 book value and a $32,000 fair value. Which journal entry correctly records the exchange? A. DR Car 44,000 CR Van 32,000 CR Cash 12,000 B. DR Car 50,000 DR Accumulated depreciation-van 18,000 DR Loss 9,000 CR Van 59,000 C. DR Car 50,000 DR Accumulated depreciation-van 18,000 DR Loss 9,000 CR Van 59,000 D. DR Car 44,000 DR Accumulated depreciation-van 18,000 DR Loss 9,000 CR Van 59,000 CR Cash 12,000
