[reo]

Added numbers to each MCQ so it’s easy for me to know which question you’re replying to. All help is appreciated, thank you!

1.

Eastern Corp. exchanged delivery trucks with Central, Inc. Eastern’s truck originally cost $30,000, its accumulated depreciation was $20,000, and its fair value was $15,000. Central’s truck originally cost $26,000, its accumulated depreciation was $18,000, and its fair value was $10,000. Central also paid Eastern $5,000 in cash as part of the transaction. The transaction lacks commercial substance. What amount should Central record for the truck received?

A $15,000

B $14,000

C $13,000

D $10,000

2.

Clear Crystal Company exchanged equipment that cost $90,000 and has accumulated depreciation of $60,000 for a piece of new equipment and received $8,000 cash. The new equipment has a fair value of $32,000. The exchange lacked commercial substance. The gain to be recognized from the exchange is

A $10,000

B $2,000

C $1,000

D $0

3.

Sunset Company purchased equipment for $300,000 on October 1, 2015. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Sunset uses sum-of-years-digit method to take depreciation. What should Sunset report as the asset’s carrying amount as of December 31, 2017?

$124,000

$136,000

$168,000

$180,000

Reo