Behrend gave land and also paid $10,000 in cash in exchange for equipment. The book value and the fair value of the land were $80,000 and $90,000, respectively. The transaction has commercial substance. Which of the following choices would be correct?

Record equipment at & record a gain of:

$100,000; $30,000

$90,000; $20,000

$80,000; $10,000

Behrend Corporation purchased all of the assets and assumed all of the liabilities of PSU Inc., paying $2,000,000 cash. Book values and fair values of Blairs identifiable assets and liabilities were: Book value Fair value Current assets $ 420,000 $ 450,000 Property, plant, & equip. 1,200,000 1,750,000 Liabilities 300,000 300,000

Behrend would report goodwill of:

$-0-.

$400,000.

$680,000.

$100,000

$100,000; $10,000