multiple choice

Multiple Choice Questions Please answer the multiple choice questions below by putting an X in the cell to the left of the best answer. For example if you think the answer to question 1 is A, then put an X in cell A5. 1. Lewis Company traded machinery with a book value of $475,000 and a fair value of $450,000. It received in exchange from Timmons Company a machine with a fair value of $500,000. Lewis also paid cash of $50,000 in the exchange. Timmons' machine has a book value of $475,000. What amount of gain or loss should Lewis recognize on the exchange (assuming lack of commercial substance)? A. $25,000 loss $2,500 loss B. C. $0 $50,000 gain D. 2. Lynne Corporation acquired a patent on May 1, 2017. Lynne paid cash of $180,000 to the seller. Legal fees of $4,000 were paid related to the acquisition. What amount should be debited to the patent account? A. $ 4,000 B. $ 176,000 C. $ 180,000 D. $ 184,000 3. Azmi, Inc. purchased land, building, and equipment from Buthainah Corporation for a cash payment of $1,260,000. The estimated fair values of the assets are land $240,000, building $880,000, and equipment $320,000. At what amount should land be recorded for? A. B. $ 60,000 $ 210,000 $ 240,000 $ 420,000 C. D