Franklin exchanged land and $15,000 cash for equipment. The book value and the fair value of the land were $300,000 and $270,000,respectively. Which of the following choices would be correct if commercial substance exists?

Record equipment at: Record a gain/(loss)of:

A)$270,000 $(15,000)

B)$285,000 $(15,000)

C)$285,000 $(30,000)

D)$300,000 $(30,000)

E)None of the above. The answer is__________

In Alpha's efforts to estimate a value for Beta Company's goodwill,Alpha is estimating Beta's expected future earnings. Alpha is using Beta's past earnings to project future earnings. Which of the following items should not be adjusted to/from Beta's past earnings in order to project future earnings?

A)Extraordinay items

B)Unrecorded depreciable assets

C)A difference between inventory methods used by Alpha and Beta

D)Depreciation of the unrecorded asset

E)Loss on the write down of inventory

Accounting for a change in the estimated service life of equipment:

A)Is handled currently as a change in accounting principle with a retroactive calculation.

B)Requires retroactive restatement of prior year's financial statements

C)Requires a prior period adjustment

D)Is handled prospectively

Recognition of impairment for tangible operational assets is required if book value exceeds:

A)Undiscounted expected future net cash flows

B)Market Value

C)Present Value of expected future net cash flows

D)Accumulated depreciation