Alexander Company purchased a piece of equipment for $12,000 and depreciated it for three years over a five-year estimated life with an expected residual value at the end of five years of $2,000. At the end of the third year, Alex decided to upgrade to equipment with increased capacity and sold the original piece of equipment for $7,200. Calculate the gain or loss on the disposal at the end of the third year.

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A: The amount of a tangible asset decreased will be treated as depreciation and that of intangible is…

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Q: original

A: Calculation of gain or loss on the disposal at the end of the third year :

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A: Here in this question, we are required to make journal entries to record depreciation and sale of…

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A: Step 1 Depreciation is the written down in the value o f the assets.

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Q: Which method is favorable for tax advantage and explain through calculation?

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A: Journal entries are prepared to record the financial and non financial transactions of the business…

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

A:

Q: A machine purchased by the Bee Buzzsaw Company originally cost $245,000. Delivery and installation…

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A:

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