4. How much was paid for new  equipment purchased  during the year? $260,000 $285,000 $295,000 $320,000 5. What was  the  selling price  for the  motor vehicle that was  sold? $15,000 $25,000 $30,000 $85,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...
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USE THE  FOLLOWING  DATA  FOR   QUESTIONS   4  &  5

 

Chris  Ronaldo operates    a  business  operator  in  Porto  Listo.  The  following   data  was

obtained    for  the  year  2013

        Non-current  Assets                                          January                                  December

        

        Equipment at  book  value                                  640,000                                   840,000

        Motor   Vehicle   at book  value                          750,000                                   940,000

       Transactions   during the  year:     

  • Equipment   with  book value of  35 000  was sold  at a  profit  of 12,000
  • Depreciation charges   for  equipment was  25,000
  • Motor  vehicle  with book value  of  40,000  was  sold for  a loss  of  10,000
  • Depreciation charges  for motor vehicle was 30,000

 

 

 

4. How much was paid for new  equipment purchased  during the year?

  • $260,000
  • $285,000
  • $295,000
  • $320,000

5. What was  the  selling price  for the  motor vehicle that was  sold?

  • $15,000
  • $25,000
  • $30,000
  • $85,000
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