Determine the amount that is added to or subtracted from income for each of the following items. Be sure to show the dollar amount for full marks. State the effect and dollar amount for each situation in the chart below. Situation Effect on income | = Increase D = Decrease NE = no effect $ = Quantify 1. 2. 3. 4. A truck costing $45,000 and having accumulated amortization of $18,000 is sold for $16,000 cash. An investment of $100,000 in another company turns out to have been a bad idea. It looks as if the investment can be sold for only $15,000. An old building that cost $78,000 and has accumulated amortization of $78,000 is given to the fire department to burn down for practice. Land that cost $50,000 is sold for 10 payments of $10,000 each, to be received over the next 10 years. The interest included in those payments will equal $27,000. Company A makes an investment in XYZ company costing $50,000. After two years the market value of XYZ is $80,000. A division is sold as a business because the company is going to get out of that line of business. The division is sold for $340,000 in cash (proceeds), and has assets costing $670,000, accumulated amortization of $240,000, and liabilities of $120,000, which the selling company is still responsible for. Determine the effect on the net income of the selling company. 5. 6