Can you please give true answer? An asset's book value is $19,000 on December 31, Year 5. Theasset has been depreciated at an annual rate of $4,000 on thestraight-line method. Assuming the asset is sold onDecember 31, Year 5 for $16,000, the company should record:a. A loss on sale of $3,000.b. Neither a gain nor a loss is recognized in this type oftransaction.c. A gain on sale of $3,000.d. A gain on sale of $3,000.e. A loss on sale of $3,000.

Understanding the Problem:Book value: $19,000Selling price: $16,000 Steps:Compare selling price to…

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 11MCQ

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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 $18,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record: A. A loss on sale of $12,000. B. A gain on sale of $12,000. C. Neither a gain nor a loss is recognized on this transaction. D. A gain on sale of $3,000. E. A loss on sale of $3,000.
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.
An asset's book value is $64,800 on January 1, Year 6. The asset is being depreciated $900 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $46,600, the company should record: Multiple Choice Neither a gain or loss is recognized on this type of transaction. A loss on sale of $2,000. A gain on sale of $1,000. A loss on sale of $1,000. A gain on sale of $2,000.
An asset's book value is $18,700 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,700 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,700, the company should record
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: A. Neither a gain or loss is recognized on this type of transaction. B. A gain on sale of $2,000. C. A loss on sale of $1,000. D. A gain on sale of $1,000. E. A loss on sale of $2,000.
mark Inc. purchased a machinery on January 1, 2020, at a cost of P1,250,000. It is being depreciated using the straight-line method over its projected useful life of 8 years. On December 31, 2021, the asset’s fair value was P1,125,000. Accordingly, an entry was made on that date to recognize the revaluation surplus. Revaluation is recorded maintaining the proportionate relationship between the asset account and accumulated depreciation. It is the company policy to transfer a portion of revaluation surplus to retained earnings every period. What is the amount of revaluation surplus reported in equity on December 31, 2022?
An asset's book value is $18,600 on December 31, Year 5. Assuming the asset is sold on December 31, Year 5 for $14,400, the company should record: Multiple Choice A gain on sale of $13,200. Neither a gain nor a loss is recognized on this transaction. A loss on sale of $4,200. A loss on sale of $13,200. A gain on sale of $4,200.
Provide correct answer for this accounting question
ABC Company depreciates asset C by the straight-line method which was acquired in 2019 with residual value of P 14,000. Its cost and accumulated depreciation as of December 31, 2021 were P 70,000 and P 33,600, respectively. ABC Company takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of an asset's disposition. The estimated useful life of asset C is 5 years. On June 30, 2021, ABC Company sold asset C for P 28,000. How much gain (loss) should Vios record in 2022 on the disposal of asset C?(P 8,400)(P 5,600)(P 2,800)P 2,800
TB MC Qu. 08-117 An asset's book value... An asset's book value is $18,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record:
An entity purchased an asset on 1 January 2006 for OMR 10m. The asset has a useful life of 10 years and uses the straight-line method of depreciation. The asset has no residual value. What is the depreciation charge for the year to 31 December 2009? O a. OMR 769,230. O b. OMR 538,468. O c. OMR 1m. O d. OMR 700,000.

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