Sawyer Corporation has a machine (Machine A) that it acquired on 1/1/14 for $540,000. On 12/31/14 such machines have a selling price and fair value of $621,000. When used in production, such machines have an estimated useful life of 10 years with no salvage value. Use the straight-line method. Brown Corporation has a machine (Machine B) that it acquired on 1/1/14 for $729,000. On 12/31/14 such machines have a selling price and fair value of $540,000. When used in production, such machines have an estimated useful life of 10 years with no salvage value. Use the straight-line method.

56. _ Given the assumption in above except that the fair values of Machines A and B are $504,000 and

$675,000, respectively, at what amount will Brown record Machine A? a. $656,100. b. $756,000. c. $675,000. d. $737,100.

57. _ Return to the original problem. Assume that Sawyer is a dealer selling new machines and that Brown is a manufacturer. Assume that the exchange has commercial substance. For this transaction, at what amount will Sawyer record the truck? a. $540,000. b. $737,100. c. $621,000. d. $656,100.

58. _ Given the assumptions in above, at what amount will Brown record Machine A?

a. $540,000. b. $737,100. c. $621,000. d. $656,100.

59. _ Given the assumptions in above except that the selling prices and fair market values of A and B are

$756,000 and $675,000, respectively, at what amount will Brown record Machine A? a. $656,100. b. $607,500. c. $756,000. d. $675,000.

Can someone explain the how and why in these questions as well?