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 $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.

Name: An asset's book value is $64,800 on January 1, Year 6. The asset is b
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: 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 ChoiceNeither a gain or

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Company B's December 31 Year-End Balance Sheet reveals the following: • December 31, 2020 net PPE of $865 • December 31, 2020 Accumulated Depreciation of $250 • December 31, 2021 net PPE of $770 • December 31, 2021 Accumulated Depreciation of $230 • Annual 2021 Depreciation Expense was $100 • During 2021, PPE was purchased for $560; all PPE purchases are made in cash. • During 2021, the gain of the sale of PPE was $20 What is the journal entry Company B recorded to recognize 2021 depreciation expense? Dr. Accumulated Depreciation $20 Cr. Depreciation Expense $20 Dr. Depreciation Expense $100 Cr. Accumulated Depreciation $100 Dr. Depreciation Expense $20 Cr. Accumulated Depreciation $20 Dr. Depreciation Expense $100 Cr. PPE $100
Ronny’s Red Hat Company purchased machinery on August 3, Year 1 for $150,000. Ronny, the owner, estimated that the machinery would be sold for $30,000 in 10 years. If Ronny’s red Hat Company uses straight line depreciation, what is included in the entry to record the disposition of the asset on July 31, Year 3 if the machinery is sold for $120,000 cash? Question: Is there a loss or gain on disposition? How much?
Shamrock Inc. owns equipment that cost $605,000 and has accumulated depreciation of $157,000. The expected future net cash flows from the use of the asset are expected to be $400,000. The fair value of the equipment is $346,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
A fixed asset with a cost of $31,365.00 and accumulated depreciation of $28,228.50 is sold for $5,332.05. What is the amount of the gain or loss on disposal of the fixed asset? Select the correct answer. $3,136.50 loss $2,195.55 loss $2,195.55 gain $3,136.50 gain
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.
Ronny’s Red Hat Company purchased machinery on August 3, Year 1 for $150,000. Ronny, the owner, estimated that the machinery would be sold for $30,000 in 10 years. If Ronny’s red Hat Company uses straight line depreciation, what is included in the entry to record the disposition of the asset on July 31, Year 3 if the machinery is sold for $120,000 cash? Multiple Choice Dr. Loss on disposition $6,000 Cr. Gain on disposition $4,000 Dr. loss on disposition $4,000 Cannot be determined with the data provided Dr. Loss on disposition $2,500
Copper Corporation sold machinery for $47,000 on December 31, 2021. The machinery had been purchased on January 2, 2018, for $60,000 and had an adjusted basis of $41,000 at the date of the sale. For 2021, what should Copper report? a.Ordinary income of $6,000. b.A § 1231 gain of $6,000. c.A § 1231 gain of $3,000 and $3,000 of ordinary income. d.A § 1231 gain of $6,000 and $3,000 of ordinary income.
An asset which costs $25,000 and has accumulated depreciation of $6,000 is sold for $11,000. What amount of gain or loss will be recognized when the asset is sold? a. A gain of $14,000 b. A loss of $14,000 c. A gain of $8,000 d. A loss of $8,000
A fixed asset with a cost of $27,381 and accumulated depreciation of $24,642.90 is sold for $4,654.77. What is the amount of the gain or loss on disposal of the fixed asset? a.$1,916.67 loss b.$2,738.10 gain c.$1,916.67 gain d.$2,738.10 loss
A company sells a long-lived asset that originally cost $200,000 for $50,000 on December 31, 2018. The accumulated depreciation account had a balance of $110,000 after the current year's depreciation of $45,000 had been recorded. The company should recognize a: Multiple Choice $100,000 loss on disposal. $40,000 loss on disposal. $40,000 gain on disposal. $25,000 loss on disposal.
Windsor Company owns equipment that cost $972,000 and has accumulated depreciation of $410,400. The expected future net cash flows from the use of the asset are expected to be $540,000. The fair value of the equipment is $432,000.Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
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