ABC company had the following information: 1. beginning balance of equipment is 90000 2. ending balance of equipment is 75000 3. beginning balance of accumulated depreciation is 40000 4. ending balance of accumulated depreciation is 35000 5. operating expenses includes gain on sale equipment of 6000 6. operating expenses includes depreciation expense of 7000 7. the company didn't purchase any new equipment during the year. Required: compute the proceeds (sale price) of the sold equipment.

Q: ABC Engineering Company has bought an equipment for RO 100,000 with an estimated useful life of 4…

A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given then first three sub parts are…

Q: Equipment was purchased for R.O.17,000 on January 1, 2010. Freight charges amounted to R.O.700 and…

A:

Q: Lexes LLC bought an equipment on the 1st January 2015 at a cost of OMR 800,000. It is being…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: The following three accounts appear in the general ledger of Sheffeld Corp, during 2022 Equipment…

A: Book value = (cost - depreciation) Sale price of equipment = book value - loss

Q: Total company purchased an equipment for 1,200,000 that had an estimated residual value of 100,000…

A: Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its…

Q: . Assume the company uses straight-line depreciation for the equipment. At the beginning of the…

A: You have asked multiple questions. We will answer the first question for you. If u want any specific…

Q: On June 1, Michael Company purchased equipment at a cost of $120,000 that has a depreciable cost of…

A: Depreciation refers to the reduction in the book value of the asset due to obsolesce, use, wear, and…

Q: A company uses the composite method to depreciate its equipment. The following totals are for all of…

A: Equipment purchased and used by the entity will undergo wear and tear over the period where…

Q: d) Oak Ltd purchased a machine for £40,000. At the end of Its Use the amount received on sale was…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Lexes LLC bought an equipment on the 1st January 2015 at a cost of OMR 800,000. It is being…

A: The depreciation expense is charged on fixed assets as reduction in value of fixed assets with usage…

Q: On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an…

A: Cost of equipment: $206,400 Accumulated depreciation: $185,760 Let's assume, the equipment was sold…

Q: Un Company sold office equipment with a cost of $23,000 and accumulated depreciation of $12,000 for…

A: Book Value: It is the value of an asset as per the balance sheet of the company for the required…

Q: Mike Devereaux Company shows the following entries in its Equipment account for 2021. All amounts…

A: Depreciation:   Depreciation expense is a non-cash expense, which is recorded on the income…

Q: On January 1, Year 1, Bacco Company had a balance of $64,600 in its Delivery Equipment account.…

A: a. Original cost of the equipment sold = Beginning balance of Equipment account + cost of equipment…

Q: The company purchased the equipment on October 1, 20X1 for $100,000, and estimated that the…

A: Depreciation accounting

Q: c) In practice, would you expect the depreciation expense for a non-current asset to be…

A:

Q: At the beginning of its fiscal year, Koeplin Corporation purchased equipment for $50,000. At the end…

A: Here, difference between the fair value and cost of asset is treated as depreciation.  Depreciation…

Q: How much is the depreciation expense in 20x1 under the retirement method?

A: Depreciation is the expense which decreases the value of the asset on which depreciation has been…

Q: Mazaya Company purchased a piece of equipment on January 1, 2010. The equipment cost R O. 80,000 and…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/8 years) x 2 = 25%

Q: The plant and machinery at cost account of a business for the year ended 30 June 20X4 was as…

A: The key transactions incurred during the period are: i) On 01.07.X3 the last year closing balance of…

Q: Notorious Company provided the following data related to an equipment on the date of revaluation:…

A: Journal entry: An act of recording the daily transaction of a firm in the journal is called journal…

Q: The company purchased the equipment on October 1, 20X1 for $100,000, and estimated that the…

A: Depreciation refers to the fall in the historical value of an asset each year. Depreciable amount is…

Q: A company purchased an equipment for $160,000, estimated useful life of the equipment was 4 years…

A:

Q: Ham Company provided the following information at year – end:…

A: Residual Value = 2,50,00,000 x 10 % = 25,00,000 Yearly depreciation = 50,00,000 - 38,75,000 =…

Q: You requested a depreciation schedule for Semitrucks of Lamban Manufacturing Company showing the…

A: Depreciation is applicable for assets on a straight line basis with no salvage value as…

Q: ABC company had the following information: 1. beginning balance of equipment is 90000 2. ending…

A: Asset refers to any economic value resource for an individual, corporation or a country. It…

Q: The balance in the equipment account is $3,150,000, and the balance in the accumulated depreciation—…

A: (a)Calculate the book value of equipment:

Q: On January 1, Year 1, Bacco Company had a balance of $79,600 in its Delivery Equipment account.…

A: A. Computation of Original Cost of Equipment:   Amount Delivery Equipment, Beginning balance…

Q: ABC Ltd started business on January I 2014, and its financial year end on December 31 each year. It…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: The following data relate to store equipment of ABC Company for 2021: ·       Store Equipment at…

A: Ending accumulated depreciation = Opening balance + depreciation expense for the period -…

Q: On 1 June 20X9 a machine was sold which cost $20,000 on 31 July 20X5. Sale proceeds were $5,500 and…

A: Depreciation is the decrease in the value of fixed asset over the period of time, due to wear and…

Q: Belvedere Corporation had a balance in its Equipment account on January 1, Year 2 of $341,200.…

A: Solution: Purchase of additional equipment= Ending balance of equipment + equipment sold - Beginning…

Q: Given that a company is using the declining-balance method of depreciation for a machine that cost…

A:

Q: The following information was taken from the fınancial records of ABC Inc.: Equipment, December 31,…

A: Cash paid to purchase equipment during year 2 = Equipment on December 31 , Year 1 + Cost of…

Q: following data relate to store equipment of BBB Company for 2021: ·       Store Equipment at cost,…

A: Solution: For the depreciation expense on store equipment for 2021, first accumulated depreciation…

Q: 12-S1] During the period, Teen's Trends sold some excess equipment at a loss. The following…

A: The depreciation is charged on fixed assets as reduced value of fixed assets with the passage of…

Q: On January 1, a company sold a machine for $5,000 that It had used for several years. The machine…

A: Fixed asset: It is a long-term asset used in the business for long period and is depreciated for its…

Q: On December 31, Strike Company sold one of its batting cages for $12,489. The equipment had an…

A: given that, initiall cost of equipment = $427900 accumulated depreciation = $406505   sale value of…

Q: Required: 1. Identify the method of depreciation and compute the depreciation expense for the third…

A:

Q: Blackpink has sold during the year a depreciable asset that cost P11,250 and had a carrying amount…

A: Here in this question, we are required to calculate amount of the adjusting entry for depreciation…

Q: ABC Corp uses the straight line method to depreciate a machine purchased on Jan 1, 20X1 for P20,000.…

A: Depreciation is the gradual conversion of the cost of a  fixed asset into expense. It does not mean…

Q: Presented below is information related to equipment owned by Porto Company at December 31, 2017.…

A: Impairment loss = Carrying value of assets - Recoverable value of assets Recoverable value = Lower…

Q: On January 1, 20x1, ABC Co. purchased a new machine for P600,000. The machine had an estimated…

A: Solution-1           Cost of new machine $6,00,000         Salvage Value $1,50,000…

Q: A company whose accounting year is the financial year, purchased on 1 April 2018 machinery costing…

A: Depreciation is the decrement in the value of asset due to usage, wear and tear obsolence or passage…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.