33. In an asset exchange where the exchange has commercial substance, a gain or

Question

33. In an asset exchange where the exchange has commercial substance, a gain or loss is recognized in an amount equal to: A. The difference between the historical cost of the asset given up and its accumulated depreciation. B. The difference between the fair value of the asset received and the cash paid for the asset. C. The difference between the book value of the asset given up and the book value of the asset received D. The difference between the fair value and the book value of the asset given up. E. None of the above 34. The process of cost allocation requires which three factors be established at the time the asset is put into use? A. The service life, allocation base, and allocation method B. The historical cost, accumulated depreciation, and residual value. C. The service life, historical cost, and residual value. D. The allocation method, the historical cost, and the residual value. E. None of the above. 35. Trident Corporation's results for the year ended December 31, 2016, include the following material items: $8,200,000 4,800,000 Sales revenue Cost of Goods Sold Unrealized holding gain loss on investment securities$800,000 Selling and Administrative expenses Gain on sale of investments Gain on foreign currency translation adjustment Restructuring costs 2,000,000 300,000 75,000 280,000 Trident Corporation's income from continuing operations before income taxes for 2016 is: A. S1,120,000 B. $220,000 C. $1,700,000 D. $1,420,000 36. The impairment test for an asset held for sale requires a comparison of the asset's book value to: A. It's replacement cost. B. It's fair value less costs to sell. C. It's implied fair value. D. The undiscounted sum of future cash flows. E. None of the above.

Explanation / Answer

Question no. 33:

D) part is the answer as the difference between fair value and book value of the asset given up.

Question no. 34:

A) part is the answer - Three factors are : The service life, allocation base and allocation method.

Question no. 36:

b) Its fair value less cost to sell.

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