Multiple Choice Accounting Problems (Simple)

Question 15 (1 point) When accounting for asset exchanges, if a transaction lacks commercial substance, which of the following is correct? Gains can be recognized Gains cannot be recognized O The gain will always be $10,000 )The cost of the asset received is equal to the net book value plus the gain plus the accumulated depreciation Question 16 (1 point) Jakob Corporation uses the fair value model of accounting for its investment property. The fair values of its property were $124,000 and $129,000 at December 2011 and December 2012 respectively. At December 2012 Jakob should ( a) Recognize a gain of $5,000 in income ()b) Report a gain of $5,000 in other comprehensive income O c) Defer the gain until realized O d) none of the above