Place an "X" against, or insert a yellow highlight on the best answer for each of the following five (5) multiple-choice questions. Only one answer will be accepted for each question. Each question is worth 2 marks. No account will be taken of any notes or supporting calculations electronically written 1. Moonfish Company acquired a piece of equipment for $80,000 in 2018. In early 2020, when the machine had accumulated depreciation of $20,000, Moonfish exchanged the equipment for a machine owned by another company that had a list price of $70,000 and a fair market value of $65,000. If the exchange had commercial substance, how much would the gain or loss on exchange be for Moonfish? a. 50 (no gain or loss) b. $5,000 c. $10,000 d. $15,000 2. Moondust Limited's Statement of Financial Position included an asset properly classified as equipment with a cost of $95,000 and accumulated depreciation of $25,000. After performing its annual reliew for impairment, Moondust determined that the equipment's value in use is $58,000 and its fair value less costs of disposal is $62.000. Moondust follows IFRS If Moondust wanted to use the rational entity impairment model, what is the amount impairment to be recorded? a. $8,000 b. $12,000 c. $33,000 d. No impairment can be recorded because the rational entity model is only used under ASPE 3. Moonbeam Company began the year with capital assets of $743,000 and accumulated depreciation of $121,000. During the year, capital assets were purchased for $78,000 and capital assets were sold for proceeds of $27,000. Depreciation expense for the year was $31,000. At the end of the year, Moonbeam Company had capital assets of $757,000 and accumulated depreciation of $103,000. What was the gain or loss on disposal of capital assets during the year? a. $12,000 gain b. $12.000 logg c. 564,000 gain d. 549,000 loss 4. Moonstone Enterprises was offered the following terms for the purchase of a new machine: a down payment of $5,000 on January 1, 2017 and quarterly payments of $2,000 each starting on March 31, 2017 for the next three years. Altematively, Moonstone could pay cash for the machine and finance its acquisition with a loan from the bank that carried an 8% annual interest rate. At what amount (rounded) should the machine be recorded on Moonstone's books on the acquisition date? 2. $19,321 b. $20,072 c. $26,151 d. $28,247