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Durler Company

It received in exchange from Durler Company a machine with a fair value of $300,000. Hoyle also paid cash of $30,000 in the exchange. Durler”s machine has a book value of $285,000. What amount of gain or loss should Hoyle recognize on the exchange? A. $30,000 gain b. $ -0c. Peterson Company purchased machinery for $160,000 on January 1, 2007. Straight-line depreciation has been recorded based on a $10,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2011 at a gain of $3,000. How much cash did Peterson receive from the sale of the machinery? A. $23,000 b. $27,000 c. $33,000 d. $43,000 Sutherland Company purchased machinery for $320,000 on January 1, 2007. Straight-line depreciation has been recorded based on a $20,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2011 at a gain of $6,000. How much cash did Sutherland receive from the sale of the machinery? A. $46,000. B. $54,000. C. $66,000. D. $86,000.

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