The Income Statement125Problem 2The Adams Café sold three pieces of equipment during 20X1, as follows:ntmoo ort aA1. A range costing $6,000 and depreciated down to $1.000 was sold for a “gain" of $500.How much cash was received?CO:2. A delivery van that originally cost $30,000 was depreciated using the straight-linemethod over a three-year life. Assume a salvage value of $3,000. At the end of exactlytwo years of use, the van was sold for $15,000. What was the gain or loss on the sale?3. A computer that originally cost $3,000 was sold for $500 after the Adams Café used itfor a single year. It was being depreciated using the double declining balance method.Assume its estimated life when it was purchased was three years. What was the gainor loss on the sale?Problem 3banupsRThe Tong Lee Inn had total revenues of $600,000 for the month of June. Assume that theTong Lee Inn's percentages for June were the same as the comparative results of operationsinformation shown in Exhibit 8 for 2013.

Question
Asked Jan 21, 2020
40 views

I need help

The Income Statement
125
Problem 2
The Adams Café sold three pieces of equipment during 20X1, as follows:
ntmoo ort aA
1. A range costing $6,000 and depreciated down to $1.000 was sold for a “gain" of $500.
How much cash was received?
CO:
2. A delivery van that originally cost $30,000 was depreciated using the straight-line
method over a three-year life. Assume a salvage value of $3,000. At the end of exactly
two years of use, the van was sold for $15,000. What was the gain or loss on the sale?
3. A computer that originally cost $3,000 was sold for $500 after the Adams Café used it
for a single year. It was being depreciated using the double declining balance method.
Assume its estimated life when it was purchased was three years. What was the gain
or loss on the sale?
Problem 3
banupsR
The Tong Lee Inn had total revenues of $600,000 for the month of June. Assume that the
Tong Lee Inn's percentages for June were the same as the comparative results of operations
information shown in Exhibit 8 for 2013.
help_outline

Image Transcriptionclose

The Income Statement 125 Problem 2 The Adams Café sold three pieces of equipment during 20X1, as follows: ntmoo ort aA 1. A range costing $6,000 and depreciated down to $1.000 was sold for a “gain" of $500. How much cash was received? CO: 2. A delivery van that originally cost $30,000 was depreciated using the straight-line method over a three-year life. Assume a salvage value of $3,000. At the end of exactly two years of use, the van was sold for $15,000. What was the gain or loss on the sale? 3. A computer that originally cost $3,000 was sold for $500 after the Adams Café used it for a single year. It was being depreciated using the double declining balance method. Assume its estimated life when it was purchased was three years. What was the gain or loss on the sale? Problem 3 banupsR The Tong Lee Inn had total revenues of $600,000 for the month of June. Assume that the Tong Lee Inn's percentages for June were the same as the comparative results of operations information shown in Exhibit 8 for 2013.

fullscreen
check_circle

Expert Answer

Step 1

1.

Accounting homework question answer, step 1, image 1
fullscreen
Step 2

2.

...
Accounting homework question answer, step 2, image 1
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: At times, companies try to induce voluntary conversion by offering an added incentive—maybe cash, st...

A: Click to see the answer

question_answer

Q: Indicate whether each of the following accounts represents an asset, liability, or owner's equity: A...

A: Click to see the answer

question_answer

Q: Account analysis, high-low. Stein Corporation wants to find an equation to estimate some of their mo...

A: 1. 

question_answer

Q: Special order, opportunity cost. Chade Corp. is considering a special order brought to it by a new c...

A: Contribution margin:The amount of the contribution margin is the difference between the selling pric...

question_answer

Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at...

A: Opportunity Cost:Opportunity cost is total of potential income and other benefits that are lost due ...

question_answer

Q: Employee Net Pay Maxwell Inverness's weekly gross earnings for the week ended April 22 were $1,302, ...

A: Payroll taxes:  Payroll taxes are the taxes withheld by the employers from the wages/salary payable ...

question_answer

Q: When market rates of interest rise after a fixed-rate security is purchased, the value of the now be...

A: Click to see the answer

question_answer

Q: Pauline Cooper is a registered dietitian and the foodservice director at Memorial Hospital. Increasi...

A: While accounting for revenues when different products are offered by the business, the businesses us...

question_answer

Q: Describe two alternative approaches to long-run pricing decisions.

A: