chapter 11 quiz (partial)

chapter 11 quiz (partial) - commercial substance Monier...

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In January 2008, Bevis Company exchanged an old machine, with a book value of $156,000 and a fair value of $160,000, and paid $40,000 cash for a similar used machine having a fair value of $200,000. The exchange lacked commercial substance. At what amount should the machine acquired in the exchange be recorded on Bevis' books? A $156,000 B $196,000 C $200,000 D $204,000 Monier Carpet traded cleaning equipment with a cost of $17,000 and accumulated depreciation of $3,250 for new equipment with a fair market value of $11,500. Assuming the exchange lacks
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Unformatted text preview: commercial substance, Monier should record the new equipment at A $14,750 B $13,750 C $11,500 D $7,500 Pastel Co. purchased a patent on January 1, 2005, for $714,000. The patent was being amortized over its remaining legal life of 15 years expiring on January 1, 2020. During 2008, Pastel determined that the economic benefits of the patent would not last longer than 10 years from the date of acquisition. What amount should be charged to patent amortization expense for the year ended December 31, 2008? A $47,600 B $71,400 C $81,600 D $142,800...
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