1- Bogus Co. exchanged Building 42 which has an appraised value of $4,800,000, a cost of $7,590,000, and accumulated depreciation of $3,600,000 for Building X belonging to Good Co. Building X has an appraised value of $4,512,000, a cost of $9,030,000, and accumulated depreciation of $4,752,000. The correct amount of cash was also paid. Assume depreciation has already been updated. What gain or loss did Bogus recognize on the exchange, assuming no commercial substance?
48,600 loss
24,000 gain
0 gain/loss
None of the above
2-Bogus Co. exchanged Building 42 which has an appraised value of $4,800,000, a cost of $7,590,000, and accumulated depreciation of $3,600,000 for Building X belonging to Good Co. Building X has an appraised value of $4,512,000, a cost of $9,030,000, and accumulated depreciation of $4,752,000. The correct amount of cash was also paid. Assume depreciation has already been updated. How much gain or loss did Good record, assuming no commercial substance?
0 gain/loss
234,000 gain
48,600 gain
None of the above
3-The journal entry in the buyer’s books to record the honoring by the seller of an account deemed uncollectible in a factoring agreement with recourse would include
a debit to Bad Debt Expense
debit to Allowance for Uncollectible Accounts
debit to Cash
debit to Loss on Factoring Agreement