Vaughn Manufacturing traded machinery with a book value of $1158000 and a fair value of $1930000. It received in exchange from Ivanhoe Company a machine with a fair value of $1737000 and cash of $193000. Ivanhoes machine has a book value of $1823850. What amount of gain should Vaughn recognize on the exchange (assuming lack of commercial substance)?

$77200

$ -0-

$772000

$193000

2. Equipment that cost $712800 and has accumulated depreciation of $324000 is exchanged for equipment with a fair value of $518400 and $129600 cash is received. The exchange lacked commercial substance. The new equipment should be recorded at

$518400.

$311040.

$324000.

$259200.

3. On May 1, 2020, Swifty Corporation began construction of a building. Expenditures of $610800 were incurred monthly for 5 months beginning on May 1. The building was completed and ready for occupancy on September 1, 2020. For the purpose of determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures on the building during 2020 were

$610800.

$3054000.

$2443200.

$509000.

4.

Vaughn Co. purchased for $1,936,000 property that included both land and a building to be used in operations. The sellers book value was $264,000 for the land and $792,000 for the building. By appraisal, the fair value was estimated to be $440,000 for the land and $1,760,000 for the building. At what amount should Vaughn report the land and the building at the end of the year? (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971.)

Cost allocated to land		$
Cost allocated to building		$