In October 2014, Pollock Company exchanged a used packaging machine having a book value of $240,000 for a new machine and paid a cash difference of $30,000. The market value of the used packaging machine was determined to be $280,000. The exchange had commercial substance. In its income statement for the year ended December 31, 2014, how much gain should Pollock recognize on this exchange? Select one: a. $0 b. $10,000 c. $30,000 d. $40,000 15. Legal fees incurred in successfully defending a patent suit should be capitalized when the patent has been Internally Purchased from Developed an Inventor Select one: a. Yes No b. Yes Yes c. No Yes d. No No 16. Winwood Construction purchased a crane on January 1, 2013, for $102,750. At the time of purchase, the crane was estimated to have a life of six years and a residual value of $6,750. In 2015, Winwood determined that the crane had a total useful life of seven years and a residual value of $4,500. If Winwood uses the straight-line method of depreciation, what will be the depreciation expense for the crane in 2015? Select one: a. $16,000 b. $13,250 c. $9,464 d. $8,000