Chapter 15 Problem 15-31 to 35
Problem 15-31 Answer A
Invoice price 700,000
Discount (2% x 700,000) ( 14,000)
Freight and insurance 3,000
Cost of assembling and installation 5,000
Total cost 694,000
Problem 15-32 Answer A
Equipment:
Invoice price 600,000
Discount (5% x 600,000) ( 30,000) 570,000
Land (at its fair value) 1,100,000
Machinery:
Acquisition cost 275,000
Installation cost 7,000
Trial run and testing cost 18,000
Construction of base 10,000 310,000
Total 1,980,000
Problem 15-33 Answer B
Fair value of asset given 700,000
Cash payment 160,000
Total cost 860,000
Problem 15-34 Answer B
Fair value of asset given 2,100,000
Cash payment 400,000
Cost of new inventory 2,500,000
Problem 15-35 Answer A
Fair value of asset given 1,500,000
Less: Cost of asset given 1,250,000
Gain on exchange 250,000
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