A personal computer that originally cost $5,000 has no estimated salvage value and was depreciated at the rate of 20% a year. At the end ofthe third year, the computer was sold for $1,500 cash. The transaction would result in aa. loss of $1,500.Ob. gain of $250.Oc. loss of $250.Od. gain of $1,500.

In nothing given about the depreciation it is assumed that the company is gone for SLM method…

A personal computer that originally cost $5,000 has no est the third year, the computer was sold for $1,500 cash. The transaction would result in a Oa. loss of $1,500. Ob. gain of $250. C. loss of $250. Od. gain of $1,500.

A personal computer that originally cost $5,000 has no est the third year, the computer was sold for $1,500 cash. The transaction would result in a Oa. loss of $1,500. Ob. gain of $250. C. loss of $250. Od. gain of $1,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 6. Last year Bill Bailey quit his $20,000 per year job and invested $200,000 to open the Bargain…

A: Economic profit takes into consideration all revenue items and cost items and also the opportunity…

Q: Which of the following amount represents tje depreciation expense for the new cash register…

A: C.None of the above--answer

Q: Problem 6-45 (LO. 3) Alex, who is single, conducts an activity in the current year that is…

A: To determine the amount of income Alex must report and the deductible expenses related to his hobby…

Q: What is the cost per mile over the course of a year for a $30,000 car that depreciates 20%, with…

A: Computation of Total Yearly Expenses :- (gas + Insurance + oil + registration + Depreciation)…

Q: On August 1 of year 0, Dirksen purchased a machine for $25,500 to use in its business. On December 4…

A: MACRS stands for Modified accelerated recovery system. Under this method, the tax deductions for the…

Q: Loss of 21300 is incurreed in selling (for cash) office qeuipment that cost 89000 and had…

A: GAIN OR LOSS ON SALE OF ASSETS Gain or loss on disposal of an asset is the difference between the…

Q: 3. The car that Deborah bought is 4 years old. She paid $9,600. This make and model depreciates…

A: Present value refers to the method of capital budgeting in which the current value of an asset that…

Q: On January 1, Year, 1, Henna Inc. purchased a building $800,000. The entire cost was recorded as a…

A: Retained earnings represent the earnings accumulated by the business over years of operation.…

Q: The Mira Bookstore sells books used in classes Of this, 25% is for the small office at the back of…

A: Income statement means the statement which show the cost of goods sold and selling price and give…

Q: Fixtures and fittings Building 10% - Reducing balance method 2% - Straight line method 6) During the…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: A company has inventory of $550,000 in a warehouse that is completely destroyed by fire. There is no…

A: Economic Profit: A financial benefit or misfortune is the distinction between the income got from…

Q: Jebali Company reports gross income of $575,600 and other property-related expenses of $374,140 and…

A: Depletion allowance is a tax deduction that aims to match the costs of extracting or using natural…

Q: Required information [The following information applies to the questions displayed below.] On August…

A: Capital gainThe capital gain refers to an increase in the value of a capital asset and the amount…

Q: 20. A transaction caused a P500,000 decrease in both total assets and total liabilities. The…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: b. What is Gwen's adjusted basis in the equipment? c. What is Gwen's recognized gain or loss? d. How…

A: Adjusted basis of the equipment or any asset is the carrying value of the asset after deducting the…

Q: A Consigned to B 1000 kgs. of certain goods at $ 200 per kg. Incurring $ 5,000 as expenses. 100 kgs.…

Q: (C) ABC Corp. acquired a new equipment. It had the following details: Invoice price of the machinery…

A: Fixed assets are the long-term fixed assets purchased by the firm to increase the productivity of…

Q: On August 1 of year O, Dirksen purchased a machine for $38,250 to use in its business. On December 4…

A: Depreciation seems to be one of the accounting approaches used to spread the worth of tangible fixed…

Q: Note:- not use of excel and solve correctly.Last time incorrect solution given Q) determine the…

A: The transactions of the company will be recorded first in the company's books which is called as…

Q: What is the premium expense for the current year?* a. 4,000,000 b. 4,500,000 c. 18,000,000 d.…

A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…

Q: Required Information [The following information applies to the questions displayed below.] On August…

A: Accumulated depreciation is the total amount of depreciation expense allocated to a particular asset…

Q: Current Attempt in Progress Coronado, Inc. has 6 computers which have been part of the inventory for…

A: The inventory can be valued using various methods as FIFO, LIFO and average method.The net…

Q: Garcia Co. owns equipment that costs $78,300, with accumulated depreciation of $40,800. Garcia sells…

A: 1. Cost of Equipment= 78300 2. Accumulated Depreciation on equipment= 40800 3. Book value of…

Q: Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accun.…

A: A cash flow statement is a statement showing inflows and outflows of cash during a particular…

Q: Jebali Company reports gross income of $664,000 and other property-related expenses of $431,600 and…

A: This question deal with the calculation of depletion allowance. As per US tax code, Depletion…

Q: Kristen Lu purchased a used automobile for $18,950 at the beginning of last year and incurred the…

A: Relevant costs are expenses and revenues that directly impact a specific business decision. These…

Q: 4. A broadcasting corporation purchased an equipment that costs P7,000, last 8 years and has a…

A: The book value of an asset refers to the net carrying amount of the total assets of the entity,…

Q: 6. Las Bugambilias, S.A. of C.V. sold 50 defective cell phones for $2,150.00 each, their cost was…

A: Loss is the difference between the selling price and the cost If the cost is higher than the selling…

Q: 14. Harris Company has an old asset that originally cost $115,000 (accumulated amortization,…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: On December 31, Strike Company sold one of its batting cages for $206,720. The equipment had an…

A: Book Value = $243,200 - $36,480 Book Value = $206,720

Q: On August 1 of year 0, Dirksen purchased a machine for $37,250 to use in its business. On December 4…

A: One accounting technique that appears to be used to spread the value of tangible fixed assets over…

Q: A fire destroyed Jimmy's Teeshirt Shop. The business had an adjusted basis of $500,000 and a fair…

A: In the case of reporting gain or loss related to damage of insured property, the issue of recording…

Q: Cost of computer $1900 Paper, ink cartridges and other consumables $110 Cost of colour laser…

A: The question is related to Accounting for Fixed Assets. i.e. Property , Plant and Equipment. In the…

Q: Kenzie Company purchased a 3-D printer for $357,000. Although this printer is expected to last for…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: What is the liability for the outstanding premiums at year-end? *

A: The amount that an organization owes is referred to as a liability of the organization. All the…

Q: A machine depreciates by 12% each year. The original cost is 8,500. Make out a schedule showing the…

A: Given: Cost of asset = 8,500 Depreciation rate = 12%

Q: In 2012, an apartment building was purchased. The building's depreciation was $236,510, and it was…

A: Formula: Gain or loss = Asset cost - Depreciation amount

Q: Required Information [The following information applies to the questions displayed below.] On August…

A: Accumulated depreciation is the total amount of depreciation expense allocated to a particular asset…

Q: 6. A certain corporation purchased a machine for plastic lamination of posters for 720,000. At the…

A: solution working note calculation of rate for declining balance =1-(salvage value / cost )^1/life…

Q: Dandy Candy Company sold its loorice division resulting in a loss of S80,000. Assuming a tax rate of…

A: The loss on disposal of assets is reported in Income statement at pre-tax figure.

Q: What was the net book value of the asset at the time of sale?

A: In this situation, the organisation had depreciated the building for five years out of its ten-year…

Q: 0J une 2017 (the last day of the financial (Marks: 25 year) Moore Retailers sold one of their office…

A: Ans. For calculating the profit or loss, we need to consider the accumulated depreciation amount and…

Q: 16-Muscat Bakery LLC bought a Toyota Hiace Van for its business in July 2018. The cost of the Van is…

Concept explainers

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

Question

A personal computer that originally cost $5,000 has no estimated salvage value and was depreciated at the rate of 20% a year. At the end of
the third year, the computer was sold for $1,500 cash. The transaction would result in a
a. loss of $1,500.
Ob. gain of $250.
Oc. loss of $250.
Od. gain of $1,500.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

E. A new building was bought on July 1, 20-1, for $846 000. It is depreci- ated using the declining-balance method at the rate of 4%. Ignore the 50% rule. 20-1 20-2 20-1 20-3 20-2 F. Repeat Part E above. This time, assume the 50% rule is in effect. 20-4 20-3 20-5 20-4 20-5
The Company purchased @ Euro 50,000. Purchase was made in two lots. The first lot September 10 and the October 20 paid only 25%. Calculate the purchasing lot. Select one: a. 37500:12500 b. 12500:37500 c. 40000:10000 d. 25000:25000 Next page Previous page
A company discarded a computer system originally purchased for $8,750. The accumulated depreciation was $6,450. The company should recognize a (an): Multiple Choice 0:58:57 $0 gein or loss. $2,300 loss. $2,300 gein. $8,750 gain. $6,450 loss
The loss on the cash sale of equipment was $20,125 (details in b). Sold equipment costing 591,875, with accumulated depreciation of $45,125, for $26, 625 cash. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long- term notes payable for the balance. Paid $52,125 cash to reduce the long-term notes payable. Issued 4,000 shares of common stock for $20 cash per share. Declared and paid cash dividends of $53, 100. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year.
Kristen Lu purchased a used automobile for $11,450 at the beginning of last year and incurred the following operating costs: $ 2,290 $ 1,200 $ 600 $310 Depreciation ($11,450 ÷ 5 years) Insurance Garage rent Automobile tax and license Variable operating cost $ 0.13 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $2,290. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 11,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost per mile Average cost per mile 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in…
8
In the preparation of the 20x4 consolidated income statement, depreciation expense will be: A. Debited for 5,000 in eliminating entries B. Credited for 5,000 in eliminating entries C. Debited for 13,000 in eliminating entries D. Credited for 13,000 in eliminating entries
provide answer of both Question please fast it
The insured has divided the insurance on its building as follows: $200,000 with insurer M and $300,000 with insurer R. The If there is a $100,000 loss, insurer M will pay: OA $40,000 OB. $60,000 C $66,666 $100,000 D.
H3.
May 21st Transaction: Bought a laptop, paying $15751 cash as a down payment and signed a 8 month $52501, 7% note payable for the balance. The company paid $901 to have its company logo painted on the side of the van. The residual value is $12001. The old laptop was sold for $12001; it cost $67501 and accumulated depreciation until the date of disposal was $60001. Produce a journal entry for this transaction.
Saved Help Save & Exit Submit TB MC Qu. 07-124 (Algo) Valley Spa purchased... Valley Spa purchased $11,200 in plumbing components from Tubman Company. Valley Spa signed a 90-day, 7% promissory note for $11,200. If the note is dishonored, what is the amount due on the note? (Use 360 days a year.) Multiple Choice $11,200 $11,450 $196 $11.396 1,069 15 étv MacBook Air 80 888 DII DE F3 F4 F5 F6 F7 F8 %23 24 2 3 7 8 W E R