The plant assets section of the comparative balance sheets of Anders Company is reported below.1.2.3.ANDERS COMPANYComparative Balance SheetsPlant assetsEquipmentAccumulated depreciation-EquipmentEquipment, netBuildingsAccumulated depreciation-BuildingsBuildings, net2018Cash received from the sale of buildingDepreciation expensePurchase of building$ 295,000(146,000)$ 149,000$ 495,0002017$ 385,000(256,000)$ 129,000$ 515,000(354,000)(169,000)$ 326,000 $ 161,000During 2018, a building with a book value of $93,000 and an original cost of $415,000 was sold at a gain of $83,000.1. How much cash did Anders receive from the sale of the building?2. How much depreciation expense was recorded on buildings during 2018?3. What was the cost of buildings purchased by Anders during 2018?

Depreciation expenses are the indirect expenses forming part of the expenses section of the income…

During 2018, a building with a book value of $93,000 and an original cost of $415,000 was sold at a gain of $83,000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2018? 3. What was the cost of buildings purchased by Anders during 2018? Cash received from the sale of building 1. 2. Depreciation expense 3. Purchase of building

During 2018, a building with a book value of $93,000 and an original cost of $415,000 was sold at a gain of $83,000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2018? 3. What was the cost of buildings purchased by Anders during 2018? Cash received from the sale of building 1. 2. Depreciation expense 3. Purchase of building

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume that Bloomer Company purchased a new machine on January 1, 2017, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2019, Bloomer discovered that the machine would not be useful beyond December 31, 2022, and estimated its value at that time to be $2,000. Required: 1. Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2017 to 2022. If necessary, round any depreciation calculations to the nearest dollar.
Vaughn Corporation owns machinery that cost $26,000 when purchased on July 1, 2021. Depreciation has been recorded at a rate of $3,120 per year, resulting in a balance in accumulated depreciation of $10,920 at December 31, 2025. The machinery is sold on September 1, 2026, for $6,760. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (a) (b) Debit Credit
A retail building used in the business of a sole proprietor is sold on March 10, 2021, for $342,000. The building was acquired in 2011 for $400,000 and straight-line depreciation of $104,000 had been taken on it. What is the maximum unrecaptured § 1250 gain from the disposition of this building? a.$400,000 b.$322,000 c.$104,000 d.$26,000
Lockard Company purchased machinery on January 1, 2017, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. (a) Compute 2017 depreciation expense using the sum-of-the-years’-digits method. (b) Compute 2017 depreciation expense using the sum-of-the-years’-digits method, assuming the machinery was purchased on April 1, 2017.
Ronny’s Red Hat Company purchased machinery on August 3, Year 1 for $150,000. Ronny, the owner, estimated that the machinery would be sold for $30,000 in 10 years. If Ronny’s red Hat Company uses straight line depreciation, what is included in the entry to record the disposition of the asset on July 31, Year 3 if the machinery is sold for $120,000 cash? Question: Is there a loss or gain on disposition? How much?
Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. The company purchased the new car on May 1, 2018. The purchase price was $22,600 and had a useful life of 3 years. The salvage or residual amount is 5% of the purchase price. Round to the nearest whole dollar. Calculate the total depreciation expense in 2018, 2019, 2020, and 2021 using the Double-Declining Balance Method.
In its first year of business, Coronado purchased land, a building, and equipment on March 5, 2023, for $636,000 in total. The land was valued at $269,400, the building at $336,750, and the equipment at $67,350. Additional information on the depreciable assets follows: Asset Building Equipment (a) Land Residual Value Building Your answer is correct. $ $25,200 $ 4,000 Equipment $ Useful Life in Years Allocate the purchase cost of the land, building, and equipment to each of the assets. 60 8 254400 318000 Depreciation Method 63600 Straight-line Double diminishing-balance
Tan Chin Company purchases a building for $11,300,000 on January 2, 2017. An engineer’s report shows that of the total purchase price, $11,000,000 should be allocated to the building (with a 40-year life), $150,000 to 15-year property, and $150,000 to 5-year property. No residual (salvage) value should be considered. Compute depreciation expense for 2017 using component depreciation
On March 15, 2022, Helen purchased and placed in service a new Escalade. The purchase price of the automobile was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Assuming that Helen does not use additional first-year depreciation, calculate the total depreciation deduction that she can take on the vehicle for 2022. Section § 179 expense MACRS cost recovery Total deduction b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation?
On January 1, 2018, Monster Bar & Grill purchased a building, paying $55,000 cash and signing a $107,000 note payable. The company paid another $61,000 to remodel the building. Furniture and fixtures cost $53,000, and dishes and supplies—a current asset—were obtained for $8,700. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2018. depreciation information: Monster is depreciating the building over 25 years using the straight-line method, with estimated residual value of $59,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated using thedouble-declining-balance method, with a residual value of zero. At the end of the first year, the company still had dishes and supplies worth $1,500. Show what the company will report for supplies, plant assets, and cash flows at the end of the first year on its income statement, balance sheet, and statement of cash flows. Begin with…
Can you show me step by step this one too? 13. ABC Inc. purchased a truck on January 1, 2018 for $40,000. The truck had an estimated life of six years and anestimated salvage value of $4,000. ABC uses the straight-line method to depreciate the asset. On July 1, 2020, the truck was sold for $14,000 cash. A. Determine the effect on the accounting equation upon recording the depreciation for 2018. Assets = Liabilities + Stockholders’ Equity Revenues – Expenses =Net Income B. Calculate the gain or loss on the sale of the asset.
At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May June Date 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. April 1 $26,520,000 11,934,000 60,640,000 7,580,000 May 1 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated…