As a result of the transaction, what is the effect on the profit or loss? what is the cost of the new asset acquired? with computations

Q: The difference between book value of the asset with the proceeds receive from its sale, with result…

A: Assets:   It refers to the economic value of all resources owned by the business at a given point in…

Q: Demonstrates the difference between depreciation costs as expenses and the cash flow generated by…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: What entry is made when selling a fixed asset?

A: Following entry is passed when selling the fixed assets:

Q: What is residual value or salvage value? Why and how is it calculated in accounting?

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Do I have to include depreciation when computing net present value?

A: Depreciation is said to be none cash expense so there is no out flow of cash when depreciation…

Q: Explain how the depreciation method selected affects the balance sheet and income statement

A: Depreciation is the loss in the value of the asset caused due to its usage, wear, and tear. There…

Q: Explain the historical cost concept as it applies to long-term operational assets. Why is the book…

A: The cost of a fixed asset include every expenses incurred in bringing the asset into present…

Q: The book value of an asset is computed as the asset's _____.

A: The assets can be defined as fixed assets and current assets.

Q: hat is the amount realized in a transaction? The gain on the sale of an asset The proceeds less the…

A: Capital gain is realized from the sale of fixed assets.

Q: What are depreciation and its purpose? Does the book value of a fixed asset (cost minus accumulated…

A: Depreciation is an expense which shows the decrease in the asset's value over the life of the asset…

Q: What are the requirements of depreciating an asset?

A: Depreciation is a non-cash expense which is charged against the use of the fixed assets of the…

Q: Describe the method of the asset's depreciation?

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: Determine an asset's depreciable life?

A: A tangible asset is a substantial resource. Tangible resources incorporate fixed resources including…