Gold company was experiencing financial difficulties, but was not bankrupt or insolvent. the national bank, which held a mortgage on other real estate owned by gold, reduced the principal from $110,000 to $85,000. the bank had made the loan to gold when it purchased the real estate from silver, inc. pink, inc., the holder of a mortgage on gold’s building, agreed to accept $40,000 in full payment of the $55,000 due. pink had sold the building to gold for $150,000 that was to be paid in installments over 8 years. as a result of the above, gold must: a. include $40,000 in gross income. b. reduce the basis in its assets by $40,000.c. include $25,000 in gross income and reduce its basis in its assets by $15,000.d. include $15,000 in gross income and reduce its basis in the building by $25,000.e. none of these.

Kubin company’s relevant range of production is 18,000 to 22,000 units. when it produces and sells 20,000 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 4.00 variable manufacturing overhead $ 1.50 fixed manufacturing overhead $ 5.00 fixed selling expense $ 3.50 fixed administrative expense $ 2.50 sales commissions $ 1.00 variable administrative expense $ 0.50 required: 1. for financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. for financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units? 3. for financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. for financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units?