Use the following to answer questions 20 - 22 AJ Construction is in the process of closing its operations. It sold its five-year-old Caterpillar 279C Compact Track Loader for $100,000. The loader originally cost $180,000 and had an estimated useful life of 10 years and an estimated residual value of $40,000. The company uses straight-line depreciation for all equipment. 20. $ Calculate the book value of the loader at the end of the fifth year. 21. $ What was the gain or loss on the sale of the loader at the end of the fifth year; (if loss, put – in front of your answer). 22. Record the sale of the loader at the end of the fifth year.
Use the following to answer questions 20 - 22 AJ Construction is in the process of closing its operations. It sold its five-year-old Caterpillar 279C Compact Track Loader for $100,000. The loader originally cost $180,000 and had an estimated useful life of 10 years and an estimated residual value of $40,000. The company uses straight-line depreciation for all equipment. 20. $ Calculate the book value of the loader at the end of the fifth year. 21. $ What was the gain or loss on the sale of the loader at the end of the fifth year; (if loss, put – in front of your answer). 22. Record the sale of the loader at the end of the fifth year.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.3E
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