An asset's book value is $19,100 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,100 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,100, the company should record: a. Neither a gain nor a loss is recognized on this type of transaction. b. A gain on sale of $3,150. c. A gain on sale of $3,000. d. A loss on sale of $3,150. e. A loss on sale of $3,000.

An asset's book value is $19,100 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,100 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,100, the company should record: a. Neither a gain nor a loss is recognized on this type of transaction. b. A gain on sale of $3,150. c. A gain on sale of $3,000. d. A loss on sale of $3,150. e. A loss on sale of $3,000.

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...

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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 $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 $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.
Merchant Company purchased land for a building site. The costs associated with the property were: $ 187,000 16,200 2,000 3,200 Purchase price Real estate commissions Legal fees. Expenses of clearing the land What is the total recorded cost of the land? Multiple Choice $208,400 $203,200 $187,000 $205.200
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 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
A fixed asset with a cost of $34,571 and accumulated depreciation of $31,113.90 is sold for $5,877.07. What is the amount of the gain or loss on disposal of the fixed asset? Oa. $3,457.10 loss Ob. $3,457.10 gain Oc. $2,419.97 gain Od. $2,419.97 loss
A fixed asset with a cost of $31,021 and accumulated depreciation of $27,918.90 is sold for $5,273.57. What is the amount of the gain or loss on disposal of the fixed asset? Oa. S2,171.47 loss Ob. $3,102.10 loss Oc. S2,171.47 gain Od. S3,102.10 gain
Use this information to answer the following 6 questions. Madison Company acquired a depreciable asset at the beginning of Year 1 at a cost of $12 million. At December 31, Year 1, Madison gathered the following information related to this asset: Carrying value of the asset at 12/31/Y1 $10 million Fair value of the asset at 12/31/Y1 $7.5 million Sum of expected future cash flows at 12/31/Y1 $10 million Present value of expected future cash flows at 12/31/Y1 $8 million Remaining useful life at 12/31/Y1 5 years Determine the impact on Year 1 net income from depreciation and possible impairment under IFRS.
Madison Company acquired a depreciable asset at the beginning of Year 1 at a cost of $12 million and 6 years useful life. At December 31, Year 1, Madison gathered the following information related to this asset: Fair value of the asset (net selling price) . . . . . . . . . . . . . . . . . . . . . . . . $7.5 million Sum of future cash ﬂows from use of the asset . . . . . . . . . . . . . . . . . . $10 million Present value of future cash ﬂows from use of the asset . . . . . . . . . . . $8 million Impairment loss of the asset at end of year 1 (if any) Select one:a. IFRS $0 and US GAAP: $ 2 millionb. IFRS $2.5 million and US GAAP $2 millionc. IFRS $2 million and US GAAP $0 million d. IFRS $4 million and US GAAP $0 million
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