None Gulf Resources, Inc. sold one of its drilling platforms that waspurchased on January 1, 2010, for $50,000 and wasdepreciated on a straight-line basis over a 5-year life. Therewas no salvage value associated with the drilling platform. Ifthe drilling platform was held for four years and sold for$14,000, what was the amount of gain or loss recorded at thetime of the sale?

Step 1: Define Sale of Fixed AssetsCompanies that own fixed assets that are used in their…

Answered: Gulf Resources, Inc. sold one of its…

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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The Johnson Company bought a truck costing $24,000 two and a half years ago. The truck's estimated life was four years at the time of purchase. It was accounted for by using straight line depreciation with zero salvage value. The truck was sold yesterday for $19,000. What taxable gain must be reported on the sale of the truck?
On February 1, 2006, Mason Company purchased a building for $359,000. The building was assigned a useful life of forty years and a salvage value of $11,000. XYZ Company uses the straight-line depreciation method to calculate depreciation on its long-term assets. The building was sold for $121,000 cash on August 1, 2029. Calculate the amount of the loss recorded on the sale. Do not enter your answer with a minus sign in front of your number.
Jeter Company purchased a new machine on May 1, 1998 for $176,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $8,000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2007, the machine was sold for $24,000. What should be the loss recognized from the sale of the machine? $-0- O $3,600 $8,000 $11,600
Crouch Company purchased a new machine on May 1, 1998 for $176,000. At thetime of acquisition, the machine was estimated to have a useful life of ten yearsand an estimated salvage value of $8,000. The company has recorded monthlydepreciation using the straight-line method. On March 1, 2007, the machine wassold for $24,000. What should be the loss recognized from the sale of themachine? a. $0.b. $3,600.c. $8,000.d. $11,600.
What was the gain or loss on sale?
Post Company uses straight- line depreciation for all of its depreciable assets. Post sold a piece of machinery on December 31, 2009, that it purchased on January 1, 2009 for $ 2,000. The asset had a five- year life and zero residual value. Accumulated depreciation was $400. If the sales price of the used machine was $ 1,200, the resulting gain or loss on disposal was which of the following amounts? Gain of $400 Gain of $ 1,200. Loss of $ 400. Loss of $800
On January 1, 2016, Rexford Company purchased a drilling machine for $11,500. The machines has an estimated useful life of 4 years and a salvage value of $200. Given this information, if Rexford uses double-declining-balance method of depreciation, and sells the machine on December 31, 2017, for $3,000 cash. Then how much will be gain or loss on disposal of this asset? $ 2,750 loss $ 1,800 loss $1,562 gain $ 125 gain
The Galley purchased a property two years ago at a cost of $19,800, and the firm uses a three-year straight line depreciation method. The firm no longer uses this property so is selling it today at a price of $13,500. What is the amount of the pretax profit on the sale? A. 11140.48 B. 6900 C. 10500 D. 10702.4
Bob's Construction Company sold a bobcat (equipment) to another construction company for $81,000 cash on January 1, 2019. The bobcat was originally purchased on January 1, 2017 for $200,000 and had an expected useful life of 7 years with no salvage value. Under the straight line depreciation method, what is the loss on the sale of the equipment on January 1, 2019? Assume that depreciation has been recorded through December 31, 2018 and enter a positive number for the loss.
On January 1, 2007, Flax Co. purchased a machine for 528,000 and depreciated it by the straight-line method using an estimateduseful life of eight years with no salvage value. On January 1, 2010, Flax determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of 48,000. An accounting change was made in 2010 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 2010 ofa.292,000b.308,000c.320,000d.352,000
Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an estimated useful life of 12 years and an estimated residual value of $40,000. The machine was depreciated using the straight-line method. On April 1, 2021, the company no longer needed the machine and sold it for $80,000. Dewey takes a half-year depreciation for the year an asset is disposed. a. What is the book value of the machine at the end of 2020? $115,000 b. Calculate and record the depreciation for 2021 in the journal provided. c. Calculate the book value of the machine at the time of sale. $102,500 d. Record the sale of the machine on April 1 in the journal provided.
Babcock Company purchased a piece of machinery for $30,000 on January 1, 2022, and has been depreciating the machine using the sum-of-the-years'-digits method based on a five-year estimated useful life and no salvage value. On January 1, 2024, Babcock decided to switch to the straight-line method of depreciation. The salvage value is still zero and the estimated useful life is changed to a total of six years from the date of purchase. Ignore income taxes. Required: 1. Prepare the appropriate journal entry, if any, to record the accounting change. 2. Prepare the journal entry to record depreciation for 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry, if any, to record the accounting change. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the accounting change.

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