Gain or Loss? D.C Company disposed of an asset at the end of theeighth year of its estimated life for $11,500 cash. Theasset's life was originally estimated to be 10 years. Theoriginal cost was $53,300 with an estimated residualvalue of $5,300. The asset was being depreciated usingthe straight-line method. What was the gain or loss onthe disposal?

Explanation of Straight-Line Depreciation:Straight-line depreciation is a method of allocating the…

Answered: D.C Company disposed of an asset at the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An asset that had a first cost of $80,000 was depreciated according to the MACRS method over a 5-year period. At the end of year 4, it was replaced with a more-advanced system and sold for $15,000. Determine if depreciation recapture or a capital loss was present and, if so, how much.
Jason Co purchased a machinery for £100,000 on 1/1/2018. It had an estimated useful life of ten years and it was depreciated using the reducing balance method at a rate of 20%. On 1/1/20 it was decided to change the depreciation method to the straight line. There was no change to the useful life, and no residual value is anticipated. What are the accumulated depreciation and the net book value of the asset for the year ended 31 December 2021?
An asset owned by Photon Environmental was book-depreciated by the straight line method over a 5-year period with book values of $296,000 and $224,000 in years 2 and 3, respectively. Determine (a) the salvage value S used in the calculation, and (b) the unadjusted basis B.
Entity A acquired an asset that had a cost of P130,000. The asset is being depreciated over a 5-year period using the sum-of-the-years’ digit method. It has a salvage value estimated at P10,000. The loss/gain if the asset is sold for P38,000 at the end of the third year is ?
A company purchased a piece of farm equipment at a cost of $38,000 and sold it two years later for $25,300. Assume that depreciation is calculated using the straight-line method, a five-year service life, and an $8,000 residual value. 1. What was the gain or loss on the sale? _________ on sale _____________ 2. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
An asset owned by Photon Environmental was book depreciated by the straight line method over a 5-year period with book values of $296,000 and$224,000 in years two and three, respectively. Determine (a) the salvage value used in the calculation, and (b) the asset’s basis.
CALCULATE the amount, if any, of recapture of depreciation, ordinary loss, or capital gain on the disposal of an asset that was sold at the end of year 1 for $ 18,000. The machine was originally purchased at a cost of $ 20,000 and was depreciated using the MACRS method for a 5 year property class. INDICATE if there was recapture of depreciation (D), ordinary loss (P) or capital gain (G) in the disposal of this asset amount= type of arrangement=
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Peavey Enterprises purchased a depreciable asset for $31,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,800, what will be the amount of accumulated depreciation on this asset on December 31, Year 3?
Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value is $18,000, and the estimated useful life is 8 years. The straight-line method will be used for depreciation. Given this information, the depreciable base of the asset will be O $115,000. O $208,000. O $172,000. O $23,750. Submit Answer Save for Later
Winona Rider Company has an investment property acquired four years ago at a total cost of P 1,000,000. The investment property is measured under the cost model and depreciated using the straight line method over an estimated useful life of 10 years with no residual value. The current fair value of the property is P 400,000. If WInona Rider decides to transfer the investment property to owner-occupied property, the transfer will most likely results to __________in Winona Rider's statement of profit or loss? Select two (2). Choose the amount of loss and the type of loss that shall be recognized on the above transaction. Winona Rider Company has an investment property acquired four years ago at a total cost of P 1,000,000. The investment property is measured under the cost model and depreciated using the straight line method over an estimated useful life of 10 years with no residual value. The current fair value of the property is P 400,000. If WInona Rider decides to transfer the…

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