An asset was acquired on October 1, 2021, for $101,000 with an estimated five-year life and $21,000 residual value. The company uses units-of-production depreciation and expects the asset to produce 32,000 units. Calculate the gain or loss if the asset was sold on March 31, 2024, for $74,000. Actual production was: 2021 = 800 units; 2022 = 7,000 units; 2023 = 8,000 units; 2024 = 1,200 units. Multiple Choice $24,240 gain. $30,800 gain. $15,500 gain. $15,800 gain.
An asset was acquired on October 1, 2021, for $101,000 with an estimated five-year life and $21,000 residual value. The company uses units-of-production depreciation and expects the asset to produce 32,000 units. Calculate the gain or loss if the asset was sold on March 31, 2024, for $74,000. Actual production was: 2021 = 800 units; 2022 = 7,000 units; 2023 = 8,000 units; 2024 = 1,200 units. Multiple Choice $24,240 gain. $30,800 gain. $15,500 gain. $15,800 gain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An asset was acquired on October 1, 2021, for $101,000 with an estimated five-year life and $21,000 residual value. The company uses units-of-production
Multiple Choice
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$24,240 gain.
-
$30,800 gain.
-
$15,500 gain.
-
$15,800 gain.
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