Copier A has a fair market value of $180,000 that cost $220,000 and has accumulated depreciation of $120,000 is exchanged for a new copier with a list price of $300,000 and no cash is received.

1. Assuming the exchange has commercial substance, the gain to be recognized from the exchange is...

a) 80,000

b) 0

c) 40,000

d) 60,000

2. Assuming the exchange has commercial substance, the new copier should be recorded at...

a) 300,000

b) 100,000

c) 120,000

d) 180,000

3. Assuming the exchange lacks commercial substance, the gain to be recognized from the exchange is

a) $0

b) 80,000

c) 40,000

d) 60,000

4. Assuming the exchange lacks commercial substance, the new copier should be recorded at

a) 180,000

b) 100,000

c) 300,000

d) 120,000