The cost of a nonmontary asset acquired in exchange

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9. The cost of a nonmontary asset acquired in exchange for another nonmonetary asset and the exchange has commercial substance is usually recorded at a. The fair value of the asset given up, and a gain or loss is recognized. b. The fair value of the asset given up, and a gain but not a loss may be recognized. c. The fair value of the asset received if it is equally reliable as the fair value of the asset given up. d. Either the fair value of the asset given up or the asset received whichever one results in the largest gain (smallest loss) to the company. 10. On February, 2007, Morgan Corporation purchased a parcel of land as a factory site for $200,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2007. Costs, incurred during this period are listed below: Demolition of old building $ 20,000 Architect’s fees 35,000 Legal fees for title investigation and purchase contract 5,000 Construction costs 1,090,000 (salvaged materials resulting from demolition were sold for $10,000) Morgan should record the cost of the land and new building, respectively, as 11. Wheeler Corporation constructed a building at a cost of $20,000,000. Average accumulated expenditures were $8,000,000, actual interest was $1,200,000, and avoidable interest was $600,000. If the salvage value is $1,600,000, and the useful life if 40 years, depreciation expense for the first full year using the straight-line method is
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