Frank operates a construction business in Dallas,Texas. On May 1, 2022, Frank purchased a warehousefor his business. The warehouse cost $500,000. InJune 2022, Frank purchased some new equipment forthe business. The equipment cost $200,000. Franktook $8,000 of depreciation on the warehouse in 2022and $13,000 in 2023. Frank took $40,000 ofdepreciation on the equipment in 2022 and $80,000 in2023. Frank decided to sell the warehouse andequipment so he could upgrade the business. He soldthe warehouse for $550,000 and the equipment for$220,000 on December 31, 2023. What result toFrank?

Profit on sale of fixed assets : Profit on sale of fixed assets is an non operating income for the…

Answered: $220,000 on December 31, 2023. What…

Business

Accounting

$220,000 on December 31, 2023. What result to Frank?

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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Question

Frank operates a construction business in Dallas,
Texas. On May 1, 2022, Frank purchased a warehouse
for his business. The warehouse cost $500,000. In
June 2022, Frank purchased some new equipment for
the business. The equipment cost $200,000. Frank
took $8,000 of depreciation on the warehouse in 2022
and $13,000 in 2023. Frank took $40,000 of
depreciation on the equipment in 2022 and $80,000 in
2023. Frank decided to sell the warehouse and
equipment so he could upgrade the business. He sold
the warehouse for $550,000 and the equipment for
$220,000 on December 31, 2023. What result to
Frank?

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