Answer/Explanation:
1. Charlie: Asset revalued
Asset Old Value New Value Gain Loss
Land 200,000 95,000 105,000
Crane 285,000 300,000 15,000
Total loss recognized by Charlie = $105,000 $15,000 = $90,000
2. Sebago: Asset revalued
Asset Old Value New Value Gain Loss
Stock 700,000 630,000 70,000
Land 200,000 95,000 105,000
Total gain recognized by Sebago = $105,000 $70,000 = $35,000
3. Betty: Asset revalued
Asset Old Value New Value Gain Loss
Crane 285,000 300,000 15,000
Stock 700,000 630,000 70,000
Total gain recognized by Betty = $70,000 $15,000 = $55,000
