Please provide the solution to this general accounting question using proper accounting principles. Ever trail Co. sold equipment with an original cost of $70,000and accumulated depreciation of $30,000. The equipment wassold at a loss of $5,000.As a result of this transaction, cash would:

To determine the cash received from the sale, we use the following formula: Book Value of Equipment…

Answered: Ever trail Co. sold equipment with an…

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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Slipper Company sold a productive asset, a machine, for cash. It originally cost Slipper $20,000. The accumulated depreciation at the date of disposal was $15,000. A gain on the disposal of $2,000 was reported. What was the asset's selling price?
Arlington Company sold equipment for $90,000 cash. The equipment had an original cost of $180,000 and accumulated depreiation of $70,000 as of the date of sale. Which of the following would NOT be included in the entry to record the sale?
Romanova Inc. decides to sell an old piece of equipment and receives $5,000 cash for it. The original cost of the equipment was $50,000 and it had accumulated depreciation of $47,000 associated with it. Which of the following items would be increased by the sale of the old equipment? (check all that apply) Cash from Operating Activities Total Assets Net Income Gain on Sale Cash from Investing Activities
Ladd Company sold a plant asset that originally cost$50,000 for $22,000 cash. If Ladd correctly reports a$5,000 gain on this sale, the accumulated depreciation onthe asset at the date of sale must have been:a. $33,000.b. $28,000.c. $23,000.d. Some other amount.
Flanagan Concrete owns equipment with a book value of $3,500,000. The equipment is estimated to generate future cash flows of $2,975,000. The equipment has a fair value of $2,890,000. The journal entry to record the impairment loss will a.) increase the asset’s Accumulated Depreciation account by $610,000. b.) include a $610,000 credit to the Equipment account. c.) record a loss of $85,000. d.) reduce income from continuing operations by $525,000.
Hodge Co. exchanged Building 24 which has an appraised value of $6,400,000, a cost of $10,120,000, and accumulated depreciation of $4,800,000 for Building M belonging to Fine Co. Building M has an appraised value of $6,016,000, a cost of $12,040,000, and accumulated depreciation of $6,336,000. The correct amount of cash was also paid. Assume depreciation has already been updated. Instructions Prepare the entries on both companies' books assuming the exchange had no commercial substance. Show a check of the amount recorded for Building M on Hodge's books. (Round to the nearest dollar.) PLEASE NO Hand writing, and don't upload a picture.
Bryn Enterprises exchanged old trucks (cost $70,000 less $27,000 accumulated depreciation) plus cash of $20,000 for a new semi-truck. The old trucks had a fair market value of $23,000. Prepare the entry to record the exchange of assets by Bryn Enterprises.
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Macey Co. exchanged a piece of equipment that had cost $40,000 (now 75% depreciated) for a truck with a current appraised value of $15,000. Macey Co. gave the other company the piece of equipment and $8,000. Macey Co. should record a. a $3,000 lossb. the truck at $18,000c. a gain of $11,000d. the truck at $23,000
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A machine with a cost of $176,000 and accumulated depreciation of $108,000 is sold for $58,400 cash. The amount of the loss related to the sale of this machine should be reported in the operating section under the indirect method is: $86,900. $9,600. $14,100. $28,500. $5,840.

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Ever trail Co. sold equipment with an original cost of $70,000 and accumulated depreciation of $30,000. The equipment was sold at a loss of $5,000. As a result of this transaction, cash would: