Company H owns a conveyor belt that costs $85,000 with a residual value of $5,000 and a useful life of 10 years. If the company sells the asset on January 1st of year 5, for $61,000 cash what is the amount of Gain / Loss the Company would record?

Q: Wildhorse Corporation purchased an asset at a cost of $60,000 on March 1, 2020. The asset has a…

A: Depreciation refers to the decline in the value of an asset over a due course of time because of the…

Q: Gateway Inc. bought a machine on January 1, 2021 for $50,000. Gateway plans to keep the machine for…

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

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and…

A: Given that: Lump sum payment for Land, Buildings and for Land improvements = $27,50,000

Q: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…

A: GIVEN   At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000…

Q: lisa Trading owns machinery that costs MYR 80,000. It is the policy of the business to charge…

A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…

Q: The Yeet Corporation purchased an office building several years for $200,000. The company took…

A: Section 1231 property is one that is retained by the company for more than one year for use in…

Q: a.Se buys a team for experimentation and research for $100,000. The equipment will depreciate using…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Maxine Corporation purchased an investment property on January 1, 2017 for a cost of $2,200,000. The…

A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

Q: Assume a company purchased a forklift on May 2, 20Y6 for $23,000. The residual value of the forklift…

A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life

Q: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…

A: Lets understand the basics. Depletion needs to calculate when there is extraction of mineral…

Q: Wah Co. has an investment property acquired four yéárš ago at a total cost of P1,000,000. The…

A: Working Note; Accumulated depreciation for 4 years = Cost x 4 years / 10 years…

Q: Miss Granny purchased a machine amounting to $700,000 on January 1, 2013 providing the newest kind…

A: At the time of making reclassification, the fair market value (FMV) of the respective element…

Q: The relevant discounted operating cash flows (cost savings) that should be factored into Tractor…

A: Solution:- Given, On January 1, 2021 Tractor Company will acquire a new asset  Costs = $4,50,000…

Q: Wake Coffee Co. has a piece of equipment no longer needed for production. The company purchased the…

A: Introduction:- A piece of machinery at Wake Coffee Co. is no more in use. The machinery was…

Q: Early in the current year, Tokay Co. purchased the Silverton Mine at a cost of $20,000,000. The mine…

A: Natural resources: Resources that occur from nature are called natural resources. It is not…

Q: Corrine Company owns a warehouse that it no longer needs in its own operations. The warehouse was…

A: In the above question we have asked to calculate profit after tax in the given situation which are…

Q: On January 4, 1986, Rita Racksaw purchased a warehouse for $150,000. In 2020, she sold the warehouse…

A: Section 1231 is formulated for the real and depreciable business properties. Section 1231…

Q: Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an…

A: Depreciation is considered as an expense charge on the value of the Asset. The most common method…

Q: What is the net book value of the forklift as of December 31, 20Y6? Please explain your answer and…

A: Cost of Forklift = $23000 Residual Value = $500 Useful Life = 10 Years Annual Depreciation = (Cost -…

Q: Rigley Industries sells a plant asset which originally cost $240,000 for $90,000 on December 31,…

A: SOLUTION-   GAIN OR LOSS ON DISPOSAL = ORIGINAL COST -ACCUMULATED DEPRECIATION- SALES VALUE.

Q: On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2,…

A: The acquisition cost of fixed assets is apportioned to different assets on the basis of percentage…

Q: Your company purchased an asset with a total cost of $300,000.  The asset has an expected useful…

A: Cost of assets= $ 300000 Expected useful life = 20 Years Expected residual Value = $ 50000 Annual…

Q: McFadden Company owns equipment with a cost of $475,000 and accumulated depreciation of $280,000…

A: Lease is a contract between two parties in which one party provides its asset for use to another…

Q: Milk Tea Company acquired a property consisting of land and a building through foreclosure on…

A: As per IFRS 5 Non-current assets which are held for sale are to be measured  at lower of 1. Fair…

Q: ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years…

A: Loss from sale of equipment is the difference between the receipt from sales and cost less…

Q: On July 1, 2019, Amplex Company purchased a coal mine for $2 million. The estimated capacity of the…

A: The answer is stated below:

Q: turdivant Company owns an executive plane that originally cost $1,280,000. It has recorded…

A: In straight line method of depreciation there is uniform annual depreciation and book value…

Q: On January 1, 2012, Pacific Airlines sold an airplane with an estimated useful life of 10 years. At…

A: The sum of the years' digits method is one technique for figuring quickened depreciation. (A more…

Q: McFadden Company owns equipment with a cost of $475,000 and accumulated depreciation of $280,000…

A: The income statement shows the net income or net loss that is calculated by deducting the expenses…

Q: On January 1, 2014, Tanaka, Inc. purchased equipment for $27,000. Tanaka uses straight-line…

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

Q: XL Co. owns a machine purchased a machine 4 years ago for OMR 80,000. The accumulated depreciation…

A:

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Bullding 1. Bullding 2. and…

A: Apportionment of cost refers to the distribution of cost to the department in the ratio of various…

Q: Alpha purchased delivery equipment amounting to P100,000 and plans to sell the asset for P10,000 at…

A: The formula to calculate annual depreciation is Cost - SalvageUseful life

Q: On January, 2023, Big Company purchased a mineral mine for P2,640,000 with removable ore estimated…

A: Depletion expenses: Depletion expenses is the reduction in the profit due to the use of natural…

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and…

A: Journal entries ae used to record a business transactions for the first time in the accounting…

Q: On January 1, 2024, Tyson Manufacturing Corporation purchased a machine for $40,000,000. Tyson's…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: ABC Inc. purchased a machine on January 1, 2014 for 900,000. This asset will be depreciated for 10…

A: Replacement cost - Replacement cost is the cost incurred to improve the performance of the assets.…

Q: Haystack company purchased a machine on January 1, 2015 for $48,000. The company estimates that the…

A: This question deals with the calculation selling price of machine with $3,500 gain. We first need to…

Q: On January 3, 2018, Tracer Incorporated purchased a patent for $450,000 to manufacture a new type of…

A: Amortization is a process that lowers down the book value of the intangible asset.

Q: On January 1, 2021 Tractor Company will acquire a new asset that costs $450,000 and that is…

A: Time value of money: The time value of money is the idea that the value of money received today will…

Q: Anax Corporation purchased a long-term asset for $100,000. The asset has a 30% CCA rate. At the end…

A: Under the CCA rule of capital allowance, the deprecation is charged at on the reducing balance of…

Q: On January 1, 2022, Estrime Company purchases an investment property at a cost of P50,000,000…

A: Solution Investment property is the property which is purchase by a person with the intention to…

Q: FDN Company acquires a building on April 1, 2021 at a cost of P52,500,000.  The building has an…

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

Q: On April 1, 2019, CanAm Company purchased a copper mine at a cost of $14,000,000.  The mine was…

A: Depletion expense per ton = (Cost - Residual value)/Total estimated tons

Q: Sony Company has decided to sell one of its old machines on December 31, 2019. The machine was…

A: The gain or loss is calculated as the difference between sale value and book value of the assets.

Q: Ferrigno Company owns equipment with a cost of $225,000 and accumulated depreciation of $81,000 that…

A: Lease- It is a contract in which one person gives its asset to a second person for use by the second…

Q: . How much is the gain on leaşeback recorded on January 1, 2021?* For numbers 3 to 5, please refer…

A: The question is related to Accounting for Lease. In case of leaseback transaction the gain is the…

Q: Yokoyama Company owns a machine with a cost of $92,000 and accumulated depreciation of $18,500 that…

A: Differential analysis is a schedule prepared to determine the profit or loss from the alternatives…

Q: urchasing equipment  for $150,000 (7yr MACRS property). The estimated useful life of the equipment…

A: MACRS is modified accelerated depreciation in which there is more depreciation during the initial…