An asset owned by Carlisle Industries has a book value of $22,500 on December 31, Year 7. The asset has been depreciated at an annual rate of $5,000 using the straight-line method. Assuming the asset is sold on December 31, Year 7 for $19,000, how should the company record the transaction?

An asset owned by Carlisle Industries has a book value of $22,500 on December 31, Year 7. The asset has been depreciated at an annual rate of $5,000 using the straight-line method. Assuming the asset is sold on December 31, Year 7 for $19,000, how should the company record the transaction?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 10RE: Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on...

See similar textbooks

Related questions

Q: Average collection period for 2022

A: Step 1: Definition of Average Collection PeriodThe average collection period measures the average…

Q: compute the asset turnover ratio in

A: Step 1: Definition of Asset Turnover RatioThe Asset Turnover Ratio measures how efficiently a…

Q: Calculate the annual depreciation

A: Explanation of Straight-Line Depreciation:Straight-line depreciation is a method of allocating an…

Q: ??

A: Concept of Variable CostsVariable costs are expenses that change in direct proportion to the level…

Q: Precious Metal Mining has $12 million in sales, its ROE is 12%, and its total assets turnover is 4…

A: To calculate net income, we use the Return on Equity (ROE) formula: ROE=EquityNet Income Thus,Net…

Q: Accurate Answer

A: Concept of Gross ProfitGross profit is the financial gain a company makes after deducting the cost…

Q: Provide correct answer general accounting question

A: Step 1: Define Return on Common Stockholders' Equity (ROE)The Return on Common Stockholders' Equity…

Q: Want answer

A: Step 1: DefinitionsCost of Goods Manufactured (COGM) - COGM refers to the total production cost of…

Q: Hii teacher please provide answer general accounting question

A: Step 1: Define Standard Direct Labor RateThe standard direct labor rate includes the basic wage…

Q: Do fast answer of this general accounting question

A: Step 1:Ratio analysis is a method of compression of financial data with previous years or with other…

Q: Solve this Accounting Problem

A: Calculation of the Total Cost of the MachineTotal Cost of the Machine = Purchase price + shipping…

Q: Describe the reasons why it is important that auditors should plan their audit work.

A: Step 1: Following are the reasons why it is important that auditors should plan their audit work:…

Q: Department T based on departmental sales.

A: Step 1: Definition of Service Cost AllocationService Cost is the cost incurred by the service…

Q: On May 1, Dark Horizons Inc. had a beginning cash balance of $200. April sales were $500, and May…

A: Explanation of Beginning Cash Balance:The beginning cash balance refers to the amount of cash a…

Q: Get Answer of this General Accounting Question

A: Step 1: Definition of Cash Receipts from CustomersCash receipts from customers refer to the actual…

Q: A firm has a profit margin of 5% and an equity multiplier of 2.2. Its sales are $310 million, and it…

A: To calculate Return on Equity (ROE), we use the DuPont Formula: ROE=Profit Margin×Total Asset…

Q: the contribution margin per unit is equivalent

A: Step 1: Definition of Contribution Margin per UnitThe contribution margin per unit is the amount…

Q: HELP

A: Straight-line depreciation is a method of allocating the cost of an asset evenly over its useful…

Q: Need Answer

A: The straight-line depreciation method is the simplest way to allocate the cost of an asset over its…

Q: A retail company reports the following financial data: • Revenue: $1,200,000 • Expenses: $800,000 •…

A: The Return on Equity (ROE) is calculated using the formula:ROE=(Average EquityNet Income)×100…

Q: Calculate the annual depreciation charge.

A: Step 1:Formula of depreciation under straight line depreciation method ( Cost of assets- salvage…

Q: provide correct answer

A: Step 1: Definition of Work in Process (WIP) InventoryWork in process (WIP) inventory refers to the…

Q: hello teacher please solve account questions

A: Step 1: Definition of Beta and Risk PremiumBeta (β): Measures a stock's volatility relative to the…

Q: Everest Manufacturing uses a single raw material in its production process. The standard price for a…

A: Explanation of Material Price Variance:Material Price Variance (MPV) measures the difference between…

Q: Please see an attachment for details general accounting question

A: Step 1: Define Asset DisposalWhen a company sells a fixed asset, the difference between the sale…

Q: I want to know how to solve these 2 questions and what the answers are 1. Stella Motors has…

A: Problem 1: Finding Stella Motors' Unlevered BetaGiven Data:Total Assets = $50 millionDebt Ratio =…

Q: Please solve this questions

A: Given Data:Sales (Revenue) = $12,000,000Return on Equity (ROE) = 12% (or 0.12)Total Assets Turnover…

Q: The Mountain Ridge Brewery manufactures craft... Please answer the general accounting question

A: Step 1: Define Materials Price VarianceMaterials Price Variance (MPV) measures the difference…

Q: Her AGI is:

A: Step 1: Definition of Adjustments to Gross IncomeAn individual's adjusted gross income or, AGI is…

Q: Explain the following questions on inventory

A: Definition and Scope of IAS 2IAS 2 - Inventories is an International Financial Reporting Standard…

Q: Question Content Area Work in Process Account Data for Two Months; Cost of Production Reports…

A: Step 1: DateItemDebitCreditBalanceDebitCreditSept. 1Beginning 2,600 units , 1/4 completed 45,825…

Q: need true answer of this General accounting question

A: Step 1: Define After-Tax EarningsAfter-tax earnings represent the company's net income after…

Q: Solve this problem

A: Step 1: Calculate the Monthly Interest RateThe loan has an annual interest rate of 5.5%, so the…

Q: How much is the direct labor price variance?

A: Explanation of Direct Labor Price Variance:Direct labor price variance measures the difference…

Q: What is the average monthly return over those six months? Accounting

A: Given information:Monthly returns for a company's stock for the past six months:3.5%, 4.1%, 2.8%,…

Q: Acp Distributors purchased a Cooling System

A: Concept of DepreciationDepreciation is the systematic allocation of an asset's cost over its useful…

Q: What is the amount of the prime costs?

A: Explanation of Direct Materials: Direct materials are the raw materials that become an integral part…

Q: Provide solution of this all Question please General Accounting

A: Question 1: Current Yield of the BondFace value of bond = $1,000Annual coupon rate = 7.8% =…

Q: Solution

A: To find the gross profit margin, we'll first calculate the gross profit:Gross Profit = Sales - Cost…

Q: What is the cost of goods sold?

A: Explanation of Beginning Inventory: Beginning inventory represents the total value of goods a…

Q: Hello tutor please help me

A: Step 1: Definition of Operating LeverageOperating leverage indicates an increase in operating income…

Q: The company's gross margin percentage is

A: Step 1:Definition of Gross Margin PercentageIn the parlance of accounting, the income statement of a…

Q: What was the average collection period of the receivable in terms of days ?

A: Concept of Accounts ReceivableAccounts receivable refer to the outstanding amounts that customers…

Q: How much is the gross profit margin for this financial accounting question?

A: Step 1: Definition of Gross Profit MarginGross Profit Margin is a financial metric that measures the…

Q: Hii expert please provide correct option general accounting question

A: Step 1: Define Cash Balance CalculationThe cash balance is calculated by starting with the beginning…

Q: Need answer

A: Explanation of Gross Profit:Gross profit is the financial gain a company makes after deducting the…

Q: need true answer : General accounting question

A: Step 1: Define Gross Profit Rate The gross profit is calculated by subtracting the cost of goods…

Q: General Accounting Question solution provide please

A: Step 1: Definition of Dividend Yield:Dividend yield is a financial ratio that shows how much a…

Q: I need this question answer of this general accounting question

A: Step 1: Define Straight-Line DepreciationStraight-line depreciation is a method where an asset's…

Q: I want to correct answer general accounting question

A: Step 1: Definition of Direct Labor Efficiency VarianceThe Direct Labor Efficiency Variance measures…

Question

How should the company record the transaction?

An asset owned by Carlisle Industries has a book
value of $22,500 on December 31, Year 7. The asset
has been depreciated at an annual rate of $5,000
using the straight-line method. Assuming the asset
is sold on December 31, Year 7 for $19,000, how
should the company record the transaction?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on April 1, Year 1. Calculate the depreciation for Year 1 and Year 2 using the double-declining-balance method. Round to the nearest dollar.
Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.
Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.
An asset's book value is $28,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $12,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $24,000, the company should record:
An asset's book value is $28,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $12,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $24,000, the company should record: please provide answer
An asset's book value is
an assets book value is 19,400 on Dec 31, year 5. The asset has been depreciated at an annual rate of 4,400 on the straight-line method. assuming the asset is sold on Dec 31 year 5 for 16,400 the company should record?
Can you please give true answer?
An asset's book value is $18,200 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,200 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,200, the company should record: A). A loss on sale of $1,800. B). A loss on sale of $3,000. C). A gain on sale of $1,800. D). A gain on sale of $3,000. E). Neither a gain nor a loss is recognized on this type of transaction.
An asset's book value is $36,000 on January 1, Year 6. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record: Multiple Choice O O O Neither a gain or loss is recognized on this type of transaction. A gain on sale of $2,000. A loss on sale of $1,000. A gain on sale of $1,000. A loss on sale of $2,000.
Astro Company sold equipment on July 1, 2021 for $75,000. The equipment had cost $210,000 and had $120,000 of accumulated depreciation as of January 1, 2021. The equipment is being annually depreciated at an amount of $24,000. Required: Prepare the necessary journal entries to: A. Update the depreciation for the equipment. B. Record the sale of the equipment.