Conicelli Toyota sells a truck for $55,000. The truck had an acquisition cost of $150,000 and accumulated depreciation at the time of the sale of $85,000. Which of the following statements are true? a) Conicelli will report a $10,000 gain as a result of this sale. b) Conicelli's loss on this sale is $55,000. c) Total assets increased by $10,000 as a result of this transaction. d) Equity decreased by $10,000 as a result of this transaction.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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28. Conicelli Toyota sells a truck for $55,000. The truck had an acquisition cost of $150,000 and accumulated depreciation at the time of the sale of $85,000. Which of the following statements are true?

a) Conicelli will report a $10,000 gain as a result of this sale.

b) Conicelli's loss on this sale is $55,000.

c) Total assets increased by $10,000 as a result of this transaction.

d) Equity decreased by $10,000 as a result of this transaction.

31. KAW Products purchased a machine for $150,000 on January 1, 2016. The company intends to depreciate it over 5 years using the double-declining balance method. Residual value is $15,000, and KAW uses the mid-month convention. What is depreciation for 2017?

Group of answer choices

a) $36,000

b) $30,000

c) $27,000

d) $60,000

 

32. Using the information from the last question, what adjusting journal entry could KAW make at the end of 2020, the final year of the machine's estimated useful life.

Group of answer choices

Debit Depreciation Expense 4,440 / Credit Accumulated Depreciation 4,440

Debit Accumulated Depreciation 4,440 / Credit Depreciation Expense 4,440

Debit Depreciation Expense 7,776 / Credit Accumulated Depreciation 7,776

Debit Accumulated Depreciation 7,776 / Credit Depreciation Expense 7,776 

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