Plant and Machinery was bought by the business on June 1st, 2019 at a list price of 150,000. Transportation and installation were paid 20,000 and 30,0000 respectively. The company’s year end date is March 31st each year. It is their practice to depreciate their assets by using straight line method. The residual value is expected to be 20,000 at the end of the useful life of 10 years. The business decided to dispose off this asset on October 1st 2020 for 100,000. Required: Record the depreciation and show the book value of the asset until its disposal. Record the journal entry for disposal and gain/loss there on.
Plant and Machinery was bought by the business on June 1st, 2019 at a list price of 150,000. Transportation and installation were paid 20,000 and 30,0000 respectively. The company’s year end date is March 31st each year. It is their practice to depreciate their assets by using straight line method. The residual value is expected to be 20,000 at the end of the useful life of 10 years. The business decided to dispose off this asset on October 1st 2020 for 100,000. Required: Record the depreciation and show the book value of the asset until its disposal. Record the journal entry for disposal and gain/loss there on.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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Plant and Machinery was bought by the business on June 1st, 2019 at a list price of 150,000.
Transportation and installation were paid 20,000 and 30,0000 respectively. The company’s year end date is March 31st each year. It is their practice to
The business decided to dispose off this asset on October 1st 2020 for 100,000.
Required:
Record the depreciation and show the book value of the asset until its disposal.
Record the
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