An asset's book value is $18,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record: A. A loss on sale of $12,000.   B. A gain on sale of $12,000.   C. Neither a gain nor a loss is recognized on this transaction.   D. A gain on sale of $3,000.   E. A loss on sale of $3,000.

Q: On January 1, 20X1, the company purchased an equipment for $180,000. The equipment has a useful life…

A: Given, Jan 1 20X1: Purchase cost=$180,000Useful life=12 yearsResidual value=0

Q: Entity A acquired an asset that had a cost of P130,000. The asset is being depreciated over a 5-year…

A: Depreciation Expenses:- It is an expense incurred due to the continuous use of an asset. In this,…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $587,500. The…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $36,750. The…

A: SOLUTION- DOUBLE DECLINING BALANCE METHOD-  IT IS ONE OF THE ACCELERATE METHODS USED FOR CALCULATION…

Q: Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a five year…

A: Double declining method of depreciation is an accelerated form of depreciation method under which…

Q: An asset having a cost of $200 000 and accumulated depreciation of $40 000 is revalued to $240 000…

A: Part 1) Journal Entry  Particulars  Debit Credit Assets  A/c  Dr 80000   Accumulated…

Q: On December 31, 2021, the company exchanged old motor vehicles and RM48,000 for new motor vehicles.…

A: Since you have posted a question with multiple sub-parts, we will be solving the first three for…

Q: During the year ended 31 December Year 6, a motor vehicle originally purchased for RM5,500 in Year 2…

A: "Since you have posted a question with multiple sub parts we will solve first 3 sub parts for you.…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $30,250. The…

A: Depreciation is an accounting strategy that spreads the cost of a tangible or physical thing over…

Q: An asset was purchased for $77,000 and originally estimated to have a useful life of 10 years with a…

A: Answer a) Computation of depreciation as per Straight line method is = (Cost of an asset - Residual…

Q: An entity purchased equipment on January 1, 2019 for 5,000,000. The equipment had a useful life of 5…

A: The Numerical has covered the concept of Depreciation Accounting.  Double declining balance method:…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $662,500. The…

A: Depreciation is a reduction in the value of assets over time due to normal wear and tear,…

Q: On January 1, 20x1, XYZ G Co. acquired a building for ₱4,000,000. The asset is depreciated using the…

A: Fixed assets are those assets that are held by the business for a longer period of time. Examples of…

Q: Beckman enterprises purchase a depreciable asset on Oct1, year1 at a cost of 132,000. the asset is…

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

Q: Equipment was acquired at the beginning of the year at a cost of $76,380. The equipment was…

A: Formula   Depreciation under straight line method =    Asset cost - salvage value / useful life

Q: On January 1, 20x1, FALLACIOUS MISLEADING Co. acquired a building for ₱4,000,000. The asset is…

A: SOLUTION- IMPAIRMENT LOSS-  WHEN ASSET BOOK OR CARRYING VALUE EXCEEDS THE RECOVERABLE VALUE.…

Q: what will the recorded depreciation for the current year be? $1,250. $1,667. $2,500. $5,000.

A: Given is: Original Cost of Asset = $10000 Useful life = 4 years Residual Value = $0

Q: On January 3, 2018, Honest company acquired an item of property, plant and equipment at a cost of…

A: Asset will be reclassified as held for sale will be valued at lower of following 1) carrying value…

Q: a company sells a piece of equipment for $10,500. The book value at the time of sale was $7500and…

A: Journal entry for the sale of the asset:   Debit Credit Cash $10,500   Accumulated…

Q: On January 1, Year 1, the Dole Company purchased an asset that cost $154,000. The asset had an…

A: preparation Income statement and journal entry are as follows

Q: Equipment was acquired at the beginning of the year at a cost of $537,500. The equipment was…

A: a. Annual depreciation = (cost of the assets - residual value) / life of the assets =…

Q: How much of the impairment reversal is recognized in profit or loss? How much of the impairment…

A: Carrying amount january 1 20x6 = recovery amount- depreciation  = 1600000-(1600000×3/5)…

Q: How much of the impairment reversal is recognized in profit or loss? How much of the impairment…

A: Carrying amount = recoverable amount - depreciation Carrying amount in january 1 20x6 =…

Q: An asset has a depreciable base of $80,000 and an estimated useful life of 4 years. In the first…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On 1 January 20X8 Hendrix Co revalued its property to $200,000. Up to the date of the revaluation,…

A: We have the following information: Cost of the property: $160,000 Accumulated Depreciation: $40,000…

Q: An asset's book value is $25,200 on January 1, Year 6. The asset is being depreciated $350 per month…

A: 1. Sale of an Assets - Sale of an assets is an activity of the organization which is non operating…

Q: Equipment was acquired at the beginning of the year at a cost of $77,580. The equipment was…

A: Under straight-line method  Depreciation per Year =( Historical cost - Salvage Value)/Useful Life

Q: An entity purchased an asset on 1 January 2006 for OMR 10m. The asset has a useful life of 10 years…

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

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $612,500.

A: Straight-line depreciation method - Straight-line depreciation method charges depreciation expense…

Q: Disposal of Asset During  the  year  to  30  June  20X7,  Eugene  Ltd  sold  a  non-current  asset…

A: Carrying value = Cost-Accumulated depreciation =$180,000-$138,000 = $42,000 Loss on disposal = Sale…

Q: an assets book value is 19,400 on Dec 31, year 5. The asset has been depreciated at an annual rate…

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life…

A: Depreciation rate  under double declining balance  Method  = 2/useful life  =2/5 0.4 =40%

Q: Equipment was acquired at the beginning of the year at a cost of $587,500. The equipment was…

A: Solution:- a)Calculation of Depreciation using Straight line method as follows under:- Formula:-…

Q: Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $587,500. The…

A: Straight-line depreciation is a method of depreciation where the depreciation expenses for the life…

Q: On January 1, 20x1, PRISTINE UNCORRUPTED Co. acquired an equipment for ₱4,000,000. The equipment…

A: solution working note annual depreciation under SLM                 = cost – residual value / life…

Q: Equipment was acquired at the beginning of the year at a cost of $33,250. The equipment was…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/10 years) x 2 = 20%

Q: On January 1, 2021, Wilkes Company purchased a used delivery truck for $28,000, paying cash. On…

A: Definition:   Journal entry: Journal entry is a set of economic events which can be measured in…

Q: On January 1, Year 1, the Dole Company purchased an asset that cost $154,000. The asset had an…

A: Income statement (IS) refers to the financial statement which is prepared by companies in…

Q: The Company owns a vehicle of $10,000 since 1.1.2008. The Company uses straight line method to…

A: Cost of Vehicle = $10000 Useful Life = 5 Years Purchase Date = 1.1.2008 Book Value after 5 years =…

Q: Astro Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had…

A: Depreciation is charged to record reduction in value of asset over the period of time. It can be…

Q: suming the asse

A: Straight line depreciation & amortisation is a technique of calculating depreciation and…

Q: An entity purchased equipment on January 1, 20x1 for ₱5,000,000. The equipment had a useful life of…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

Q: Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a five-year…

A:

Q: Equipment was acquired at the beginning of the year at a cost of $78,360. The equipment was…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Roma Inc purchased an asset worth $500,000.  The useful life of the assetwill be 8 years and it was…

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

Q: Sweet Company purchased equipment on January 1, 2018, for S28,000. Suppose Sweet Company sold the…

A: recording of journal entry for depreciation are as follows.

Q: Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life…

A: Double declining rate is a method in which the asset is depreciated according to accelerated…