en 17 red A machine cost $120,000, has annual depreciation of $20,000, and has accumulated depreciation of $90,000 on December 31, 2015. On April 1, 2016, when the machine has a fair value of $27.500, it is exchanged for a machine with a fair value of $135,000 and the proper amount of cash is paid. The exchange has commercial substance. The gain to be recorded on the exchange is d out of ag question Select one: a. $5,000. b. $0. C. $15,000. d. $2,500 18 Solar Products purchased a computer for $15,000 on July 1, 2015. The company intends to depreciate it over 4 years using the double-declining balance method. Residual value is $1,000 Depreciation for 2015 is but of question Select one: a. 3,500 b. 3,750 C. 4,000 d. 4,250