E9-11 (Algo) Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5] [The following information applies to the questions displayed below.] Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $6,000. Movelt had originally purchased the vehicle and recorded it in the Truck account for $10,000 and had recorded depreciation for three years. E9-11 (Algo) Part 2 2. Using the following structure, indicate the effects (accounts, amounts, and + for increase and - for decrease) of the disposal of the truck, assuming Accumulated Depreciation-Truck was (a) $4,000, (b) $3,000, and (c) $5,000. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)

E9-11 (Algo) Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5] [The following information applies to the questions displayed below.] Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $6,000. Movelt had originally purchased the vehicle and recorded it in the Truck account for $10,000 and had recorded depreciation for three years. E9-11 (Algo) Part 2 2. Using the following structure, indicate the effects (accounts, amounts, and + for increase and - for decrease) of the disposal of the truck, assuming Accumulated Depreciation-Truck was (a) $4,000, (b) $3,000, and (c) $5,000. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)

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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E9-11 (Algo) Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5] [The following information applies to the questions displayed below.] Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $27,000. Movelt had originally purchased the vehicle and recorded it in the Truck account for $45,000 and had recorded depreciation for three years. E9-11 (Algo) Part 1 Required: 1. Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation-Truck was (a) $18,000, (b) $12,000, and (c) $21,000. (Select "None" if there is no Gain or Loss.) Gain/Loss Amount (a) None (b) Loss (c) Gain
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E9-9 (Algo) Computing Depreciation under Alternative Methods [LO 9-3] Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $54,000. The equipment has an estimated residual value of $2,700. The equipment is expected to process 271,000 payments over its three-year useful life. Per year, expected payment transactions are 65,040, year 1; 149,050, year 2; and 56,910, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete a depreciation schedule for the double-declining-balance method. (Do not round intermediate calculations.) Income Statement Balance Sheet Year Depreciation Expense Cost Accumulated Depreciation Book Value At acquisition 1 $ 2 3 68,148 $ ☑ $ 54,000 $ 68,148 54,000 ☑ × > $ 54,000
This question relate with MFRS 116 (Property, Plant and Equipment)
Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $5.2 million. The machinery can be sold to the Romulans today for $7.4 million. Klingon's current balance sheet shows net fixed assets of $4 million, current liabilities of $830,000, and net working capital of $142,000. If all the current accounts were liquidated today, the company would receive $945,000 cash. a. What is the book value of Klingon's total assets today? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. b. What is the sum of the market value of NWC and the market value of fixed assets? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. a. Book value of total assets b. Sum of market value of NWC and fixed assets
Presented below is net asset information related to the Shamrock Division of Santana, Inc. Shamrock Division Net Assets As of December 31, 2025 (in millions) Cash $67 Accounts receivable 200 Property, plant, and equipment (net) 2,611 Goodwill 217 Less: Notes payable Net assets (2,606) $489 The purpose of the Shamrock Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $410 million. Management has also received an offer to purchase the division for $335 million (deemed an appropriate fair value). All identifiable assets' and liabilities' book and fair value amounts are the same. (a) Prepare the journal entry to record the impairment at December 31, 2025. (If no entry is required,…
! Required information [The following information applies to the questions displayed below.] VQT Companies is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that VQT sold a delivery truck for $29,000. VQT had originally purchased the vehicle and recorded it in the Truck account for $49,000 and had recorded depreciation for three years. 4. Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a) $20,000, (b) $17,000, and (c) $25,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
KA. GG Shipping is a shipping line which treats its ships as complex non-current assets. The cost and other details of one of its ships are: GHS’000 estimated life Exterior structure – purchase date 1 April 2008 120,000 Interior cabin fittings – replaced 1 April 2018 25,000 Engines (5 at GHS9 million each) – replaced 1 April 2018 45,000 No residual values are attributed to any of the component parts. 20 years 5 years 36,000 sailing hours At 1 April 2021 the ship log showed it had sailed 10,800 hours since 1 April 2018. In the year ended 31 March 2022, the ship sailed for 1,200 hours for the six months to 30 September 2021 and a further 1,000 hours in the six months to 31 March 2022. On 1 October 2021 the ship suffered a ‘collision’ an accident which damaged one of the engines beyond repair. This was replaced by a new engine with a life of 36,000 hours at cost of GHS10·8 million. Another engine was also damaged, but was repaired at a cost of GHS3 million; however, its remaining…
7 Graw Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 2 2. Compute year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value. Answer is complete but not entirely correct. Year 2 straight-line depreciation expense 2.140 x Type here to search $9,400 840 720 590 $
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Presented below is net asset information related to the Metlock Division of Horton, Inc. Cash Receivable Property, plant, and equipment (net) Goodwill METLOCK DIVISION NET ASSETS AS OF DECEMBER 31, 2025 (IN MILLIONS) Less: Notes payable Net assets (a) $50 151 2,063 160 (2,141) $283 The purpose of the Metlock division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $322 million. Management has also received an offer to sell the division for $281 million. The book values and fair values are equal for all identifiable assets and liabilities. Prepare the journal entry (if any) to record the impairment at December 31, 2025. (Enter amounts in millions. If no entry is required, select "No Entry"…
The employees of Boggus Ford earn wages of $15,600 for two weeks ending April 12. FIT taxes are $424 were withheld. The entire amount of wages is subject to the FICA taxes, BUT only $10,800 is taxable under the federal and state unemployment compensation laws. The state contribution rate of the employer is 3.9%. All employees are subject to state unemployment contribution rate of 0.5% on the April taxabe wages of $10,800, and the employees' contributions are to deducted by the employer. JOURNALIZE the payment of the wages, and record the payroll taxes, assuming the contributions of the employer and the employees are recorded in one account, SUTA taxes Payable. USE a table to correctly format the journal entries OR use Word to indent CR entries.