Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. 5. Information for Captain Corporation for 2009 and 2010 is presented below.Equipment, December 31, 2009Equipment, December 31, 2010$150,000200,00040,00030,000Accumulated depreciation, December 31, 2009Accumulated depreciation, December 31, 2010During 2010, Captain sold equipment with a cost of $25,000 and accumulated depreciation of$15,000. A gain of $5,000 was recognized on the sale of the equipment. This was the only equipmentsale during the year.What amount would be reported as the cash proceeds from the sale of equipment?Cash 25000Acc Dep 15 000Equipmentgain5000A. $25,000B. $10,000C. $5,000(D. $15,000James Corp. purchased a lotto $50C25000

Cash proceeds from sale means the amount of money earned by the entity by selling the fixed asset at…

5. Information for Captain Corporation for 2009 and 2010 is presented below. Equipment, December 31, 2009 Equipment, December 31, 2010 Accumulated depreciation, December 31, 2009 Accumulated depreciation, December 31, 2010 $150,000 200,000 During 2010, Captain sold equipment with a cost of $25,000 and accumulated depreciation of $15,000. A gain of $5,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. A. $25,000 B. $10,000 C. $ 5,000 D. $15,000 40,000 30,000 What amount would be reported as the cash proceeds from the sale of equipment? Cash 25000 Acc Dep 15.000

5. Information for Captain Corporation for 2009 and 2010 is presented below. Equipment, December 31, 2009 Equipment, December 31, 2010 Accumulated depreciation, December 31, 2009 Accumulated depreciation, December 31, 2010 $150,000 200,000 During 2010, Captain sold equipment with a cost of $25,000 and accumulated depreciation of $15,000. A gain of $5,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. A. $25,000 B. $10,000 C. $ 5,000 D. $15,000 40,000 30,000 What amount would be reported as the cash proceeds from the sale of equipment? Cash 25000 Acc Dep 15.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

5. Information for Captain Corporation for 2009 and 2010 is presented below.
Equipment, December 31, 2009
Equipment, December 31, 2010
$150,000
200,000
40,000
30,000
Accumulated depreciation, December 31, 2009
Accumulated depreciation, December 31, 2010
During 2010, Captain sold equipment with a cost of $25,000 and accumulated depreciation of
$15,000. A gain of $5,000 was recognized on the sale of the equipment. This was the only equipment
sale during the year.
What amount would be reported as the cash proceeds from the sale of equipment?
Cash 25000
Acc Dep 15 000
Equipment
gain
5000
A. $25,000
B. $10,000
C. $5,000
(D. $15,000
James Corp. purchased a lot
to $50
C
25000

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