A large chiller was purchased for $10,000 and has accumulated depreciation of $8,000. The chiller was sold for $5,000. What is the correct entry to remove the asset from the books?
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A large chiller was purchased for $10,000 and has
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- [The following information applies to the questions displayed below.] Abbott Landscaping purchased a tractor at a cost of $25,000 and sold it three years later for $13,400. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,500 residual value. Tractors are included in the Equipment account. Exercise 7-17A Part 1 Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Next > search Designed by Apole in Cafomia Assembled in ChnaA copy machine costs $45,000 when new and has accumulated depreciation of $44,000. Suppose Print and Photo Center junks this machine and receives nothing. What is the result of the disposal transaction? a. No gain or loss b. Gain of $1,000 c. Loss of $1,000 d. Loss of $45,000DO NOT COPY ANOTHER ANSWER THAT'S ALREADY GIVEN. Use MACRS to compute the depreciation schedule for office furniture purchased for $80,000 (use the 7 yr depreciation schedule). Assume salvage value is $10,000
- A company purchased a computer that cost $10,000, It had an estimated useful life of 5 years and no residual value. The computer was depreciated by the straight-line method and it was sold at the end of the second year of use for $5,000 cash. The company should record:! Required information [The following information applies to the questions displayed below.] Faucet Landscaping purchased a tractor at a cost of $31,000 and sold it three years later for $16,700. Faucet recorded depreciation using the straight-line method, a five-year service life, and a $4,000 residual value. Tractors are included in the Equipment account. 2. Assume the tractor was sold for $10,900 instead of $16,700. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction 1 1 Cash General Journal Debit Credit 10.900Four years ago on January 2, Titus purchased a long-lived asset. The purchase price of the asset was 250,000, with no salvage value. The estimated useful life of the asset was 10 years. Titus used the straight-line method to calculate depreciation expense. An impairment loss on the asset of 30,000 was recognized on December 31 of the current year. The estimated useful life of the asset at December 31 of the current year did not change. What amount should it report as depreciation expense in its income statement for the next year?
- An asset that had a first cost of $80,000 was depreciated according to the MACRS method over a 5-year period. At the end of year 4, it was replaced with a more-advanced system and sold for $15,000. Determine if depreciation recapture or a capital loss was present and, if so, how much.Hawthorn Company purchased a piece of equipment for $25,000 and has accumulated depreciation of $20,000 at the end of the current year. The company decides to discard the equipment at the end of the current year. What is the journal entry for the disposal? A. Accumulated Depreciation - Equipment Gain on Disposal 30,000 Truck 25,000 B. Equipment Gain on Disposal 25,000 Accumulated Depreciation - Equipment 5,000 20,000 C. Accumulated Depreciation - Equipment 5,000 20, 000 Loss on Disposal 25,000 D. Accumulated Depreciation - Equipment 20, 000 Loss on Disposal 5, 000 Equipment 25, 000Edmonds Manufacturing Co. bought a new piece of equipment with terms of FOB: shipping point and presents the following information: Date of purchase Purchase price Shipping & Handling Installation fees Salvage value (residual value) Estimated life of the asset, in years 1/1/2015 $ 478,000 $ 5,900 $4,600 $ 26,000 20 Edmonds follows the Straight-Line Method (SLM) of depreciation and the calendar year to prepare financial statements. Edmonds spent $36,800 during 2015 on maintenance expense. Consider the following 2 scenarios: Scenario 1: Edmonds decides to sell the equipment with the sale price of $ 364,500 (received cash) Sale date: 12/31/2018 Account Name Calculate the gain (loss) from this sale transaction (after all necessary adjusting entries) and record the same with the appropriate journal entry. Only book the entry necessary for the sale of the asset. Debit Credit NOTE: There are more lincs than required for the given journal entrics. Elements and descriptions are not required.
- A machine (a Section 1231 asset that is also a Section 1245 asset) was acquired on February 5, Year 1 for $180,000. It is five-year MACRS property and cost recovery (accumulated depreciation) totals $110,880 when it is sold. The property was sold for $120,000 on July 31, Year 3. You will need to type your calculation and answer in the box. For example, type in "20,000 - 5,000 = 15,000" to calculate the adjusted basis of an asset that cost 20,000 and had accumulated depreciation of 5,000 when sold. Some items do not need a calculation so for those items just type in the answer. What will follow will be 5 questions related to this asset sale. Provide an answer for every question even if the amount is 0. 1. What is the amount realized?The Black Limo Company (BLC) purchased a limo on January 1 of Year 1. The limo cost $48,000. It had an expected useful life of 4 years and an $8,000 salvage value. Assume BLC uses straight-line depreciation. At the beginning of Year 3, the limo is sold for $30,000 cash. As a result of the asset disposal BLC will recognize a ______ activities.Gant Co. purchased a machine on July 1, 2022, for $400,000. The machine has an estimated useful life of five years and a salvage value of $80,000. The machine is being depreciated from the date of acquisition using the double declining-balance method. For the year ended December 31, 2023, Gant should record depreciation expense on this machine of:
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