Lewis Company traded machinery with a book value of $475,000 and a fair value of $450,000. It received in exchange from Timmons Company a machine with a fair value of 5500,000. Lewis also paid cash of $50,000 in the exchange. Timmons' machine has a book alue of $475,000. What amount of gain or loss should Lewis recognize on the exchange assuming lack of commercial substance)? A . $50,000 gain SO $2.500 loss $25,000 loss C D. 2. Lynne Corporation acquired a patent on May 1, 2017. Lynne paid cash of $45,000 to the seller Legal fees of $1,000 were paid related to the acquisition. What amount should be debited to the patent account? S 1,000 B $ 44,000 C S 45,000 D. $ 46,000 Problem 1 Problem 2 Problem 3 SVSU ID Multiple Choice Questions P 1. Armi, Inc purchased land, building, and equipment from Buthainah Corporation for a cash payment of $315,000. The estimated fair values of the assets are land $60,000, building $220,000, and equipment $80,000. At what amount should land be recorded for? A B $ 15,000 $ 52,500 $ 60,000 $ 105,000 D 4. Azmi, Inc purchased land, building, and equipment from Buthainah Corporation for a cash payment of $360,000. The estimated fair values of the assets are land $60,000, building $220,000, and equipment $80,000. At what amount should land be recorded for? 22 A B $ 15,000 $ 52,500 $ 60,000 $ 120,000 D 5. Azmi, Inc. purchased land, building, and equipment from Buthainah Corporation for a cash payment of SA50,000. The estimated fair values of the assets are land $60,000, building $220,000, and equipment $80,000. At what amount should land be recorded for? . . . D 560,000 $75,000 $100,000 $150,000 2 SVSU ID Multiple Choice Questions Problem 1 Problem 2 Problem 3