On January 1, 2025, Abel Company purchased three assets for $400,000. The information below relates to the assets that were purchased: Current Market Value Forklift ................... $144,500 Bulldozer .................. $119,000 Truck ...................... $161,500 In order to make the forklift usable, Abel Company had to spend $8,000 to get the forklift in working condition. Information related to the
On January 1, 2025, Abel Company purchased three assets for
$400,000. The information below relates to the assets that
were purchased:
Current Market Value Forklift ................... $144,500 Bulldozer .................. $119,000 Truck ...................... $161,500
In order to make the forklift usable, Abel Company had to
spend $8,000 to get the forklift in working condition.
Information related to the
and the bulldozer is given below:
Forklift Bulldozer
Salvage value $5,400 $7,000
Life 11 years 14 years
Depreciation method sum-of-the straight-line
years-digits
On July 31, 2035, the bulldozer was sold for $51,000 cash.
Calculate the amount of the gain recorded on the sale of
the bulldozer. Do not enter your answer with a minus sign
in front of your number.
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