Use the following information to answer the next (8) questions:

Sparky Inc. is trading a machine which has an original cost of $60,000 and accumulated depreciation of $35,000 for another fixed asset. For each of the following independent scenarios, determine thethe original cost Sparky will report on their balance sheet for thenew assetacquired in the exchangeand the gain or loss to be recognized on Sparky's Income Statement for the current year.

*If there is a gain record your answer as a positive number; if there is a loss, record your answer in parenthesis ().If there is NO gain or loss, type in NE.Round all answers to the nearest whole dollar.Do not use punctuation marks (dollar signs or commas) in recording your answers.

New Asset's Original Cost Reported on Sparky's Balance Sheet

Gain/Loss

Recognized by Sparky

1.Sparkyreceived in this exchange a machine with a fair value of$18,000 and also received $10,000 cash.The exchangelackscommercial substance.

$___________

$__________

2.Sparky traded their old asset & paid $8,000 cash to receive a machine with a fair value of $40,000. The transactionlacks commercial substance.

$___________

$___________

3.Sparky exchanged their old asset toreceive a machine with a fair value of $25,000.Sparkyalso received $5,000 cash. The transactionlackscommercial substance.

$___________

$___________

4.Sparkypaid $5,100 and exchanged the old asset to receive a new asset with a fair value of $28,000.The exchangehascommercial substance.

$___________

$___________

1.In Scenario #1, determine the original cost of the New Asset that Sparky will report on their balance sheet as a result of thistransaction.$[Blank_1]

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Question 2

1pts

For Scenario #1, determine the gain/loss Sparky will report as a result of this transaction:

$[Blank_2]

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Question 3

1pts

For Scenario #2, determine the original cost of the New Asset that Sparky will report on their Balance Sheet as a result of this exchange.$[Blank_3]

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Question 4

1pts

For Scenario #2 above, determine the gain/loss that Sparky will report as a result of this exchange.(*Note:If a gain is indicated, record your answer as a positive number; if a loss is indicated record your answer as a negative number using parenthesis ( ), if no gain or loss should be reported, record your answer as NE.)

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Question 5

1pts

For Scenario #3, determine the original cost of the New Asset that Sparky will report on their Balance Sheet as a result of this exchange.$[Blank_5]

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Question 6

1pts

For Scenario #3, indicate the gain/loss Sparky will report as a result of this exchange.

$[Blank_6]

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Question 7

1pts

For Scenario #4, determine the original cost of the New Asset that Sparky will report on their balance sheet as a result of this exchange.$[Blank_7]

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Question 8

1pts

For Scenario #4, determine the gain/loss that Sparky will report as a result of this exchange.

(*Note:If a gain is indicated, record your answer as a positive number; if a loss is indicated record your answer as a negative number using parenthesis ( ), if no gain or loss should be reported, record your answer as NE.)