aloha communication purchased equipment in January 1, 2017, for $27,500. Suppose Alpha Communication sold the equipment for $20,000 on December 31,2020. Accumulated depreciation as of December 31, 2020, was $10,000. Journalize the sale of the equipment l, assuming straight line depreciation was used.
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
aloha communication purchased equipment in January 1, 2017, for $27,500. Suppose Alpha Communication sold the equipment for $20,000 on December 31,2020.
![P Do Homework - Chapter 10 homework - Personal - Microsoft Edge
https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkld%3D593511606&questionld%3D1&flushed%3Dfalse&cld%3D6443782¢erwin-Dyes
21SP.ACCT.2301.W30C Principles of Financial Accounting!
Sarah De La Cruz & 04/15/21 7:01 F
Homework: Chapter 10 homework
Score: 0 of 20 pts
1 of 4 (0 complete)
HW Score: 0%, 0 of 10
S10-9 (book/static)
Question Help ▼
Alpha Communication purchased equipment on January 1, 2018, for $27.500. Suppose Alpha Communication sold the equipment for $20,000 on December 31, 2020. Accumulated Depreciation as of December 31, 2020, was
$10,000. Journalize the sale of the equipment, assuming straight-line depreciation was used.
First, calculate any gain or loss on the disposal of the equipment.
Market value of assets received
Less: Book value of asset disposed of
Cost
Less Accumulated Depreciation
Gain or (Loss)
Enter any number in the edit fields and then click Check Answer.
Check Answer
Člear All
1 Dart
remaining
7:01 PM
4/15/2021
o 哥つ
P Type here to search](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8df1d66f-de7f-4c3b-80cb-c86a636d6ee4%2F5857b93a-b022-4aab-9f96-854f6c93ee8e%2Fiofdg2j_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)