Apex industries has manufacturing equipment general that is being sold Apex Industries has manufacturing equipment that is being soldafter 7 years of use. The original cost of the equipment was $85,000with accumulated depreciation of $67,200, resulting in a book valueof $17,800. If Apex Industries sells the equipment for $12,500, whatis the impact of this transaction?

Step 1: Definition of Gain or Loss on Sale of EquipmentGain or Loss on Sale of Equipment is the…

Answered: Apex Industries has manufacturing…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 64P

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Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
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What is the depreciation base of the machine?
On August 1, 2015, Toy Inc. purchased a new piece of equipment that cost $25000. The estimated useful life is five years and the estimated residual value is $2,500. During the five years of useful life the equipment is expected to produce 10,000 units. If Toy Inc. uses the straight line method of depreciation and sells the equipment for $11,500 on August 1st, 2018. What will be the realized gain (loss)? Multiple Choice $0 $4,500 $13,500 None of the other alternatives are correct ($9,000) X
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I want to know the full solution of following question. On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd bookwas $600000 (costs $900000, accumulated depreciation $300000). This plant has a remaining useful life of five (5)years form the date of sale. The group measures its property plants and equipment using a costs model. Tax rateis 30 percent.Required:Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-grouptransfer of equipment.
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