2.Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $45,000 for a patent. In addition to the machine, $6,000 in cash was given. Wolf should recognize:

a. A gain of $11,000.

b. A loss of $1,000.

c. A gain of $5,000.

d. No gain or loss.

-> c is answer, but I need help to understand why cash is ignored, and please show me a full journal entry.

5. Micro Tech, Inc. made the following cash expenditures during 2013 related to the development of a new technology which was patented at the end of the year:

Materials and supplies used $ 38,000

R&D salaries 120,000

Patent filing fees 3,000

Payments to external consultants 50,000

Purchase of R&D equipment 140,000

The equipment purchased has no future use beyond the current project.$10,000 of the materials and supplies used and $32,000 in salaries relate to the construction of prototypes.In its 2013 financial statements Micro Tech should report research and development expenses of:

a. $306,000

b. $348,000

c. $351,000

d. $208,000

-> also b is answer but please explain why ?