Gain or Loss? ABC Company sold a machine for $8,500 that originally cost $16,000. Thebalance of the Accumulated Depreciation account related to this equipmentwas $10,300. The entry to record the gain or loss on the disposal of thismachine would include:a. A debit to loss in the amount of $3,500.b. A debit to loss in the amount of $6,500.c. A credit to gain in the amount of $2,800.d. A credit to gain in the amount of $2,500.

Explanation of Book Value:The book value of an asset is the value at which it is recorded in the…

Answered: ABC Company sold a machine for $8,500…

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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ABC Company sold a machine for $8,500 that originally cost $16,000. The balance of the Accumulated Depreciation account related to this equipment was $10,300. The entry to record the gain or loss on the disposal of this machine would include: a. A debit to loss in the amount of $3,500. b. A debit to loss in the amount of $6,500. c. A credit to gain in the amount of $2,800. d. A credit to gain in the amount of $2,500.
ABC Company sold a machine for $56,000 that originally cost $306,000. The balance of the Accumulated Depreciation account related to this equipment was $240,000. The entry to record the gain or loss on the disposal of this machine would include: a. A debit to gain in the amount of $10,000 b. A debit to loss in the amount of 10,000 c. A credit to loss in the amount of $10,000 d. A credit to gain in the amount of $10,000
ABC Company sold a machine for $8,500 that originally cost $16,000. The balance of the Accumulated Depreciation account related to this equipment was $10,300. The entry to record the gain or loss on the disposal of this machine would include: right Answer
A machine with a cost of $176,000 and accumulated depreciation of $108,000 is sold for $58,400 cash. The amount of the loss related to the sale of this machine should be reported in the operating section under the indirect method is: $86,900. $9,600. $14,100. $28,500. $5,840.
A truck costing S72,000 has accumulated depreciation of $48,000. The truck is sold for $8,500. The journal entry to record this transaction is to: O A. debit Cash for $8,500, debit Truck for $72,000, credit Accumulated Depreciation - Truck for $48,000 and credit Gain on Disposal for S32,500. O B. debit Cash for $15,500, debit Truck for $72,000, credit Accumulated Depreciation - Truck for $48,000, and credit Gain on Disposal for $8,500. OC. debit Accumulated Depreciation - Truck for $48,000, and credit Truck for $48,000. O D. debit Cash for $8,500, debit Accumulated Depreciation - Truck for $48,000, debit loss on Disposal for $15,500 , and credit Truck for $72,000.
The Bacon Company acquired new machinery with a price of $13,166 by trading in similar old machinery and paying $11,849.40. The old machinery originally cost $8,904 and had accumulated depreciation of $7,123.20. In recording this transaction, what should Bacon Company record? a.the new machinery at $11,849.40 b.a loss of $464.20 c.the new machinery at $11,385.20 d.a gain of $464.20
A piece of equipment that cost $32,400 and on which $18,000 of accumulated depreciation had been recorded was disposed of on January 2, the first day of business of the current year. For each of the following assumptions, compute the gain or loss on the disposal: 1. The equipment was discarded as having no value.2. The equipment was sold for $6,000 cash.3. The equipment was sold for $18,000 cash
Good Dairy sold a delivery truck for cash of $6,400. The original cost of the truck was $26,000, and a loss of $4,000 was recognized on the sale. The accumulated depreciation at the date of sale must have been: A . $15,600. B. $12,400. C. $8,400. D. $19,600.
Slipper Company sold a productive asset, a machine, for cash. It originally cost Slipper $20,000. The accumulated depreciation at the date of disposal was $15,000. A gain on the disposal of $2,000 was reported. What was the asset's selling price?
Equipment was acquired at the beginning of the year at a cost of $612,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $44,360. a. What was the depreciation for the first year? Round your answer to the nearest cent. 63,127 b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $102,987. Round your answer to the nearest cent and enter as a positive amount. $4,517 Loss c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Equipment was acquired at the beginning of the year at a cost of $79,140. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,920. a. What was the depreciation expense for the first year?$ b. Assuming the equipment was sold at the end of the second year for $59,800, determine the gain or loss on sale of the equipment.$ c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Equipment was acquired at the beginning of the year at a cost of $79,200. The equipment was depreciated using the straight-line method based on an estimated useful life of six years and an estimated residual value of $7,860. a. What was the depreciation expense for the first year? $ b. Assuming the equipment was sold at the end of the second year for $59,900, determine the gain or loss on sale of the equipment. c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Accounts Payable Accumulated Depreciation Cash Gain on Sale of Equipment Loss on Sale of Equipment

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