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Two independent companies, ABC Co. and XYZ Co, exchange buildings. The transaction lacks commercial substance....

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Accounting

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Two independent companies, ABC Co. and XYZ Co, exchange buildings. The transaction lacks commercial substance. An appraiser was hired, and from his report and the companies records, the following information was obtained: Cos Accumulated Depreciation Fair value based upon appraisal ABG'S Building $120,000 40 000 100,000 XYZ's Building $90.000 40.000 85.000 The exchange was made, and based on the difference in appraised value, XYZ Co. paid $15,000 to ABC Co. The new building should be recorded on ABC's books at Select one: O a $62,000 O b. $82,000 O c. $68,000 O d. $85,000 O e $50,000 Garrison Corporation purchased a depreciable asset for $320,000 on January 1, 2015. The estimated salvage value is $32,000, and the estimated total useful life is 9 years. The straight-line method is used for depreciation. On January 1, 2017, Garrison changed its estimates to a useful life of 5 years from its original purchase date with a salvage value of $40,000. What is the 2018 depreciation expense? Select one O a $42.000 O b. $72.000 O c. $112.000 O d. $126,000 O e $168,000

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