Question 1: John buys a new car that has a cash equivalent price of $18,000. If, John trades in his old car and pays $13,000 cash what must be the market value of John's old car?

Question 2: Dana transfers 3,000 shares of Mine Co. to Parker in exchange for his vacation home. The shares were originally purchased for $101 but are now trading at $135. What is the cash equivalent price of the vacation home?

Question 3: Debra purchases two acres of land for $335,000 for her new business, a flower shop. She also pays 8% in brokerage commission and $6,000 in transfer taxes. After the purchase is completed, she will pay $4,000 to clear the land, and $4,000 for a new advertising sign. What will be the book value of the land?

Question 4

a)

Mine Co. invests in an upgrade to the smelting machinery. The upgrade allows them to increase their daily production by 10%. This is betterment / maintenance and it should be capitalized / expensed.

b)

The motor on John's lawn mower broken down, so he purchased a replacement motor. Since he uses the lawnmower for his landscaping business, the cost of the replacement motor should be considered betterment / maintenance and it should be capitalized / expensed.

Question 5: For review, lets assume the UCW Bookstore uses the straight-line method for its new desktop computer, purchased on January 1, 2023. The computer cost $1,500 with a salvage value of $150. It is expected to last two years and the bookstore makes depreciation entries right before each quarterly reporting period. What is the quarterly depreciation expense for the computer?