A truck was acquired by trading in an older truck that has the same value in use. The newer truck has options that will make it more comfortable for the driver; however, the company remains in the same economic position after the exchange as before. Facts concerning the trade-in are as follows: Cost of truck traded Accumulated depreciation to date of exchange Fair market value of truck traded Cash paid by Blossom Fair market value of truck acquired $108,000 38,000 87,000 17,000 104,000

A truck was acquired by trading in an older truck that has the same value in use. The newer truck has options that will make it more comfortable for the driver; however, the company remains in the same economic position after the exchange as before. Facts concerning the trade-in are as follows: Cost of truck traded Accumulated depreciation to date of exchange Fair market value of truck traded Cash paid by Blossom Fair market value of truck acquired $108,000 38,000 87,000 17,000 104,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8EA: Using the information from EA7, calculate depreciation using the straight-line method.

See similar textbooks

Similar questions

What amount should be recorded as initial measurement of the right of use asset? **see attached pica. 5,600,000b. 4,088,000c. 3,912,000d. 3,288,000
Q5 Under CCA method, depreciation is provided on the _____ of the asset: a. Historical cost b. Past cost c. Current cost d. Original cost
Question When computing depreciation expence of PE bo g toutle-decing e depreciation method produce the seme OA aual book vatue of the asset OR lotal depreciation expecse over the assets usetul e Oc amnua depreciation expense of the assat. OD. annual tax paid. MacBookk Pro
What amount of depreciation should be recognized for the current year? **see attached pica. 550,000b. 600,000c. 625,000d. 460,000
A fixed asset with a cost of $34,571 and accumulated depreciation of $31,113.90 is sold for $5,877.07. What is the amount of the gain or loss on disposal of the fixed asset? Oa. $3,457.10 loss Ob. $3,457.10 gain Oc. $2,419.97 gain Od. $2,419.97 loss
On January 1, 2025, Pharoah Company purchased a machine costing $356000. The machine is in the MACRS 5-year recovery class for tax purposes and has an estimated $71000 salvage value at the end of its economic life. Assuming the company uses the general MACRS approach, the MACRS deduction for tax purposes for the year 2025 is Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 MACRS Depreciation Rates By Class of Property 10-Year (200% DB) 3-Year 5-Year 7-Year (200% DB) (200% DB) (200% DB) 33.33 44.45 14.81* 7.41 20.00 32.00 19.20 11.52* 5.76 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 SUPPORT
The amount to be included as intangible assets is *A. 345,000B. 490,000C. 410,000D. 350,000
Which of the following statements are true about the revaluation model perIAS 16 Property, Plant and Equipment?1) Excess depreciation as a result of a revaluation exercise can betransferred between reserves2) Depreciation must be charged based on the historical cost of theasset3) All assets of the same class must be revalued4) Valuations must be independent and carried out regularly Which is correct ?a) 1, 3 and 4b) All of the abovec) 1 and 3d) 2, 3 and 4
Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1. 2. 3. 4. 5. 6. 8. 9. 7. Unearned Rent Revenue. 10. 11. Common Stock. 12. Discount on Bonds Payable. Treasury Stock (at cost). Notes Payable (short-term). Raw Materials. Equity Investments (long-term). Work in Process. Copyrights. Buildings. Notes Receivable (short-term). Cash. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Salaries and Wages Payable. Accumulated Depreciation-Buildings. Restricted Cash for Plant Expansion. Land Held for Future Plant Site. Allowance for Doubtful Accounts. Retained Earnings. Paid-in Capital in Excess of Par-Common Stock. Unearned Subscriptions Revenue. Receivables-Officers (due in one year). Inventory (finished goods). Accounts Receivable. Bonds Payable (due in 4 years). Prepare a classified balance sheet in good form. (No monetary amounts are necessary.) (For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers,…
16. The total dollar amount ofassets to be classified as current assets is a. $110.000 b. $375.000 s. $560.000 d. $810.000 17. The total dollar amount ofassets to be classified as property, plant, and equipment is a. $400.000 b. $450.000 c. $500.000 d. $635.000 18. The total dollar amount ofassets to be classified as non-curent assets is a. $375.000 b. $450.000 s. $725.000 d. $140.000
What is the loss on realization of noncash assets? a. 632,000 b. 875,000 c. 855,000 d. 612,000
SummaryThree key points presented of MRFS 138 Intangible asset