Churchill Company disposed of an asset at the end of the sixth year of its estimated life for $12,500 cash. The asset's life was originally estimated to be 8 years. The original cost was $72,000 with an estimated residual value of $8,000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?

Churchill Company disposed of an asset at the end of the sixth year of its estimated life for $12,500 cash. The asset's life was originally estimated to be 8 years. The original cost was $72,000 with an estimated residual value of $8,000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?

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 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

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Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.
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Delphi Corporation disposed of an asset at the end of the sixth year of its estimated life for $9,200 cash. The asset's life was originally estimated to be 8 years. The original cost was $42,600 with an estimated residual value of $3,400. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal? HELP
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Halle Company disposed of an asset at the end of the sixth year of its estimated life for $12,500 cash. The asset's life was originally estimated to be 9 years. The original cost was $63,000 with an estimated residual value of $6,300. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?
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