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On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $247,620.00 with an accumulated depreciation of $222,858.00. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $22,285.80. What is the amount of the gain or loss on this transaction?

Select the correct answer.

a-Loss of $2,476.20

b-Gain of $24,762.00

c-Loss of $24,762.00

d-Gain of $2,476.20

A fixed asset with a cost of $37,635 and accumulated depreciation of $33,872 is traded for a similar asset priced at $54,037 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,487, the cost basis of the new asset is

Select the correct answer.

a-$54,037

b-$53,313

c-$49,550

d-$57,800

A building with an appraisal value of $139,961.00 is made available at an offer price of $152,296.00. The purchaser acquires the property for $37,931.00 in cash, a 90-day note payable for $31,680.00, and a mortgage amounting to $55,547.00. What is the cost basis recorded in the buyer's accounting records to recognize this purchase?

Select the correct answer.

a-$114,365.00

b-$139,961.00

c-$152,296.00

d-$125,158.00

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