When is a loss on disposal of an asset recorded?a. A loss is taped as soon as the ascollection is sold for a price better than the asset"sbook worth.b. A loss is taped when collected depreciation is much less than the cashreceived.c. A loss is videotaped when the asset"s residual value is less than the cashobtained.d. A loss is tape-recorded as soon as the asset is offered for a price less than theasset"s book worth.

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If an ascollection is impaired, the disability test reveals that the asset"s A. future worth flows are much less than book value B. cost is less than fair value C. helpful life is less than approximated D impaired value is undeterminable


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QUESTION 1

Use the adhering to indevelopment to answer the following (8)questions:

Sparky Inc. is trading a device which has an original expense of$60,000 and built up depreciation of $35,000 for another fixedasset. For each of the complying with independent scenarios, determinethe the original price Sparky will report on their balance sheet forthe new ascollection acquired in the exchange and the get or loss to bewell-known on Sparky"s Income Statement for the present year.

*If tright here is a get record your answer as a positivenumber; if tbelow is a loss, record your answer in parenthesis ().If there is NO acquire or loss, kind in NE. Round all answers to thenearemainder totality dollar. Do not usage punctuation marks (dollar indications orcommas) in recording your answers.

New Asset"s Initial Cost Reported on Sparky"s Balance Sheet

Gain/Loss

Recognized by Sparky

1. Sparky got in this exadjust an equipment through a fair valueof $18,000 and additionally received $10,000 cash. The exchangelacks commercial substance.

$___________

$__________

2. Sparky passist $8,000 cash and traded the old asset to obtain amachine via fair worth of $40,000. The transactionlacks commercial substance.

$___________

$___________

3. Sparky exreadjusted their old ascollection to receive a maker through afair worth of $25,000. Sparky also got $5,000 cash. Thetransactivity lackscommercialsubstance.

$___________

$___________

4. Sparky paid $5,100 and also exadjusted the old ascollection to obtain abrand-new asset with a fair worth of $28,000. The exchangehas commercial substance.

$___________

$___________

1. In Scenario #1, determine the original price of the New Assetthat Sparky will certainly report on their balance sheet as a result of thistransaction. $

1 points

QUESTION 2

For Scenario #1, identify the gain/loss Sparky will report as aoutcome of this transaction:

$

1 points

QUESTION 3

For Scenario #2, determine the original cost of the New Assetthat Sparky will report on their Balance Sheet as a result of thisexadjust. $

1 points

QUESTION 4

For Scenario #2 over, determine the gain/loss that Sparky willreport as a result of this exchange. (*Note: If a obtain issuggested, record your answer as a positive number; if a loss issuggested document your answer as an adverse number using parenthesis( ), if no get or loss have to be reported, document your answer asNE.)

1 points

QUESTION 5

For Scenario #3, determine the original expense of the New Assetthat Sparky will certainly report on their Balance Sheet as a result of thisexreadjust. $

1 points

QUESTION 6

For Scenario #3, indicate the gain/loss Sparky will certainly report as aresult of this exchange.

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$

1 points

QUESTION 7

For Scenario #4, recognize the original cost of the New Assetthat Sparky will report on their balance sheet as an outcome of thisexchange. $

1 points

QUESTION 8

For Scenario #4, determine the gain/loss that Sparky will reportas an outcome of this exreadjust.

(*Note: If a get is indicated, document your answer as a positivenumber; if a loss is suggested record your answer as a negativenumber using parenthesis ( ), if no acquire or loss need to bereported, record your answer as NE.)