Reference no: EM132600998

Questions -

Q1. Bramble Corp. traded machinery with a book value of $1137700 and a fair value of $1835000. It received in exchange from Cullumber Company a machine with a fair value of $1737000 and cash of $193000. Cullumber's machine has a book value of $1823850. What amount of gain should Bramble recognize on the exchange (assuming lack of commercial substance)?

Q2. Marigold Corp. traded machinery with a book value of $969900 and a fair value of $915000. It received in exchange from Cullumber Company a machine with a fair value of $1024800. Marigold also paid cash of $102480 in the exchange. Cullumber's machine has a book value of $969900. What amount of gain or loss should Marigold recognize on the exchange (assuming lack of commercial substance)?

Q3. Equipment that cost $541,200 and has accumulated depreciation of $246,000 is exchanged for equipment with a fair value of $393,600 and $98,400 cash is received. The exchange lacked commercial substance.

Q4. Bramble Corp. purchased machinery for $920,000 on January 1, 2017. Straight-line depreciation has been recorded based on a $59,500 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $13,000. How much cash did Bramble receive from the sale of the machinery?