Lewis Company traded machinery with a book value of $950,000…

Lewis Company traded machinery with a book value of $950,000 and a fair value of $900,000. It received from Timmons Company a machine with a fair value of $1,000,000. Lewis also paid cash of $100,000 in the exchange. Timmons’s machine has a book value of $950,000. What amount of gain or loss should Lewis recognize on the exchange (assuming a lack of commercial substance)?

Morgan Corporation purchased a depreciable asset for $600,00…

Morgan Corporation purchased a depreciable asset for $600,000 on January 1, 2023. The estimated salvage value is $60,000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. At the beginning of 2026, Morgan changed its estimates to a total useful life of 5 years (3 years already used and 2 years remaining) with a salvage value of $60,000. What is 2026 depreciation expense?