Hot Stone Creamery sold ice cream equipment for $17,600. Hot Stone originally purchased the equipment for $94,000, and depreciation through the date of sale totaled $73,000.   Record the gain or loss on the sale of the equipment.

Q: Blossom Company sells office equipment on July 31, 2022, for $23,050 cash. The office equipment…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Tamarisk Corporation owns machinery that cost $26,400 when purchased on July 1, 2022. Depreciation…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Diaz Company owns a machine that cost $125,900 and has accumulated depreciation of $92,800. Prepare…

A: Gain/loss on sale of machine = Cost - Sales price - Accumulated depreciation

Q: On June 30, 2022, the company sold old equipment for $14,400. The equipment originally cost $21,600…

A: To make a journal entry, you enter transaction data into your company's books. Your journal entries…

Q: In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3,…

A: A capital gain is generated because of the sale of both short-term and long-term capital assets.…

Q: A truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: [The following information applies to the questions displayed below.]   Evergreen Corporation…

A: Depreciation is charged on tangible assets where the asset’s cost is distributed during life when…

Q: Your answer is incorrect. Vaughn Company owns equipment that cost $1.035,000 and has accumulated…

A: Impairment of assets decreases the value of a company's long-term assets. This reduction in value…

Q: What would the journal entry to record the sale of the truck include?

A: Given information is: Dynasty Corp sold a truck for $15,000 cash. It was originally purchased for…

Q: Carla Vista Company owns equipment that cost $76,700 when purchased on January 1, 2022. It has been…

A: Depreciation Expenses are the expenses incurred on the wear and tear of the fixed assets. This is…

Q: Morrell Corporation sold a computer at the end of its useful life for $300. The computer had an…

A:

Q: Required information [The following information applies to the questions displayed below.] On August…

A: Depreciation seems to be one of the accounting approaches used to spread the worth of tangible fixed…

Q: ! Required information [The following information applies to the questions displayed below.) In year…

A: 1. Adjusted basis of the machine:   Purchase price = $50,500   Accumulated depreciation = $26,600…

Q: Oriole Company owns equipment that cost $70,500 when purchased on January 1, 2019. It has been…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: 2. Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny…

A: 1. Goodwill=Purchase consideration-Net assets=$400,000-$390,000=$10,000

Q: Garcia Company owns equipment that cost $76,800, with accumulated depreciation of $40,800. Record…

A: Journal entries are used to record accounting transactions in chronological order under double entry…

Q: Garcia Company owns equipment that cost $84,000, with accumulated depreciation of $44,400. Record…

A: Given, Cost = $84,000 Accumulated depreciation = $44,400 Book value = Cost - Accumulated…

Q: ne ulated depreciation $1,360,000 504,000 $856,000 lation is calculated at $84,000 per year on a…

A: To record the disposal of machinery, the loss on machinery must be calculated . The loss on…

Q: a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had…

A:

Q: At December 31, 2020, Flint Company reported the following as plant assets. Land $ 3,770,000…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Rooster Ltd. sells a printing press for $10,000 in order to purchase a newer model. The cost of the…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Diaz Company owns a milling machine that cost $126,600 and has accumulated depreciation of $94,600.…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: Sunland Company sells office equipment on July 31, 2027, for $23,830 cash. The office equipment…

A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.The…

Q: Sage Hill Inc. traded a used vehicle (cost $25,000, accumulated depreciation $22,000) for another…

A: JOURNAL ENTRY A journal entry records a business transaction in the accounting system of an…

Q: On July 1, 2019, Blossom Company purchased new equipment for $70,000. Its estimated useful life was…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Diaz Company owns a machine that cost $126,600 and has accumulated depreciation of $90,500. Prepare…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Diaz Company owns a machine that cost $125,100 and has accumulated depreciation of $90,600. Prepare…

A: Formulas: Gain (Loss) on the sale of the assets = Sale value of the assets - Net book value of the…

Q: recorded up to the date of sale. The entry to record the sale would include a

A: In the given case; Original cost of the asset   = 20000 accumulated depreciation = 17000 Carrying…

Q: Presented here are selected transactions for Sandhill Limited for 2024. Sandhill uses straight-line…

A: Journal Entry: It implies the recording and accounting of company's day to day or routine financial…

Q: Prepare the journal entries to record the following transactions for Cullumber Wholesale Company,…

A: Journal entry :— It is an act of recording transaction in books of account when transaction…

Q: iaz Company owns a machine that cost $250,000 and has accumulated depreciation of 182,000. Prepare…

A: The four journal entries provided are related to the disposal of a machine by Diaz Company. The…

Q: Diaz Company owns a machine that cost $126,900 and has accumulated depreciation of $93,300. Prepare…

A: Journal Entry :— It is an act of recording transactions in books of account when the transaction…

Q: Cheyenne Corp. owns equipment that cost $63,100 when purchased on January 1, 2017. It has been…

A: Journal entry refers to the first recording of a transaction in the books of accounts that effects…

Q: Francis Company purchased a machine for $24, 000; the seller is holding the note. Francis Company…

A: The adjusted basis of machinery refers to the original cost of acquiring the machinery, adjusted for…

Q: An asset's book value is $64,800 on January 1, Year 6. The asset is being depreciated $900 per month…

A: Book value of asset = Cost - Accumulated depreciation. Gain on sale = Cash received - Book value.…

Q: None

A: Accumulated Depreciation:Refers to the accumulated reduction in the value of an asset over time.When…

Q: [The following information applies to the questions displayed below.]   Evergreen Corporation…

A: MACRS is a depreciation method used to compute the expense of depreciation on different sorts of…

Q: Diaz Company owns a machine that cost $126,500 and has accumulated depreciation of $92,000. Prepare…

A: Journal entries describe how transactions influence accounts and balances and serve as a simple…

Q: On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and…

A: From July 1, 2020 to December 31, 2020 = 6 months Copyrights will be amortized for 6 months.…

Q: Diaz Company owns a milling machine that cost $125,200 and has accumulated depreciation of $90,700.…

A: Carrying Amount of Asset = cost - Accumulated Depreciation Gain/Loss on Sales = Sale Price -…

Q: Arlington Company sold equipment for $90,000 cash. The equipment had an original cost of $180,000…

A: When Equipment is sold then we have to debit cash account and credit equipment account, accumulated…

Q: On July 1, 2020, Sheffield Corporation purchased Young Company by paying $260,500 cash and issuing a…

A: Given information, Trademarks at fair value =$16,720 Useful life =4 years Residual value =$4,880

Q: Whispering Company owns equipment that cost $100,000 when purchased on January 1, 2019. It has been…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.