iaz Company owns a machine that cost $250,000 and has accumulated depreciation of 182,000. Prepare the entry to record the disposal of the machine on January 1 in each eparate situation. 1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $35,000 cash. 3. Diaz sold the machine for $68,000 cash. 4. Diaz sold the machine for $80,000 cash.
Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…
A: Answer to question a. Purchase cost of warehouse $65,000 Less: Depreciation claimed till year 0…
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: 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: This year, Amy purchased $4,200 of equipment for use in her business. However, the machine was…
A: A tax advantage known as a casualty loss deduction is offered to people and companies who lose…
Q: Wildhorse Ltd. owned several manufacturing facilities. On September 15 of the current year,…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: At what amount should the land be recorded? b.At what amount should the new office building be…
A: Sandhill Chrome Bumpers bought two acres of land with an old office building on it that was deemed…
Q: This year, Amy purchased $4,200 of equipment for use in her business. However, the machine was…
A: The method by which companies and individuals can gradually recoup the cost of certain assets…
Q: Morrell Corporation sold a computer at the end of its useful life for $300. The computer had an…
A:
Q: On January 1,2014 the Mayfair Company has machinery on the books that originally cost $100,000. It…
A: Given that Mayfair Company has machinery on the books that originally cost = $100,000.And it…
Q: Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Murphy Fumiture purchased land, paying $60,000 cash and signing a $290,000 note payable. In…
A: Cost of land = Cash paid + Note payable issued + Property tax + Title insurance + Level of land
Q: Alfredo's Pizza Cafe acquires an oven on January 1 of Year 1 for $10,000. Alfredo's capitalizes this…
A: From the given Question: Cost of Asset on January 1 - Year 1 = $10,000 Use full Life…
Q: Dlaz Company owns a machine that cost $126,300 and has accumulated depreciation of $94,400. Prepare…
A: Gain (loss) on sale of Machinery = Sales value - Net book value of the Machinery where, Net book…
Q: Lee Simpson sold the building in which she operated her business. Lee had acquired the property many…
A: Calculation of Net Realizable Value Cash - $ 190,000 + Fair Value of Property - $ 170,000…
Q: The engine of a truck burned out and needed to be replaced two years after it was originally…
A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…
Q: Karl bought a building and the land on which it is located for $186,100 cash. The land is estimated…
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger…
Q: Neptune purchased a new storage facility on April 1, 2021. The new building cost $80,000. A new…
A: Depreciation is an amount charged on the fixed assets by which the asset value decreases over its…
Q: Talbot purchases business machinery for a price of $100,000. Talbot pays the seller $20,000 in cash…
A: To solve this problem, we need to calculate Talbot's initial basis in the machinery, the amount of…
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: During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
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: Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade. Nate receives a delivery truck and…
A: Solution:- Preparation of journal entry for the exchange for Nate's Hot Dogs as follows:- Basic…
Q: Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has…
A: The question is based on the concept of Financial Accounting.
Q: Gaston owns equipment that cost $27,500 with accumulated depreciation of $22,000. Gaston sells the…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Leonard London sold a building used in his business to Michelle Martinson. He had purchased the…
A: The following calculations are done in the records of Leonard London to evaluate the gain on sale of…
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: Maple Corporation owns several pieces of highly valued paintings that are on dis This year, it…
A: Capital gain property When a business contributes capital gain property, i.e. property that will…
Q: Onslow Company purchased a used machine for $144,000 cash on January 2. On January 3, Onslow paid…
A: Depreciation is a technique used to reduce an asset's book value by taking into account its…
Q: On January 1, 2018, Absolutely Bar & Grill purchased a building, paying $57,000 cash and signing…
A:
Q: Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare…
A: Accumulated depreciation: The total amount of depreciation expense deducted, from the time asset…
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: Terry purchased a machine for $12,000; the seller is holding the note. Terry paid $2,400 for the…
A: Assets means the resources which is owned by business and used in business for earning profits.…
Q: Butte sold a machine to a machine dealer for $51,200. Butte bought the machine for $53,800 several…
A: Depreciation expense refers to amount of depreciation that is reported on income statement.
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: New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery…
A: Straight line depreciation is a typical technique for depreciation where the estimation of fixed…
Q: This year, Amy purchased $2,000 of equipment for use in her business. However, the machine was…
A: Equipment is the asset reported under the head plant, property, and equipment in the balance sheet…
Q: New Morning Bakery is in the process of closing its operations. It sold Its two-year-old bakery…
A: Given, Cost of ovens $ 910,000Estimated residual value $ 60,000Estimated service life 10…
Q: ena purchased a living room set for $3,500. Elena’s home and the contents were destroyed by a fire.…
A: Insurance is type of risk sharing with company if there is loss by accident then that is covered by…
Q: This year, Amy purchased $2,780 of equipment for use in her business. However, the machine was…
A: Casualty Loss: A casualty loss happens when an unusual occurrence lowers the asset's worth for the…
Q: New Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily…
A: Annual depreciation is calculated using the formula: Annual Depreciation = (Cost - Residual Value) /…
Q: Twilight Corporation is a construction company that owns a truck used to transport construction…
A: A transaction is assumed to have a commercial substance when the future cash flows will be affected…
Q: Diaz Company owns a machine that cost $125,700 and has accumulated depreciation of $93,300. Prepare…
A: Asset disposal is basically an act of selling an asset (usually a long term asset) that has been…
Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…
A: The question is based on the concept of Financial Accounting.
Q: Terry purchased a machine for $15,000; the seller is holding the note. Terry paid $2,500 for the…
A: The adjusted basis is computed by taking the original cost, adding the installation charges and…
Q: lisposal of the machine on January 1 in each separate situation. The machine needed extensive…
A: Solution: Journal entry: Date General Journal Debit $…
Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…
A: The correct answer for the above questions is given in the following steps for your reference.
Q: New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery…
A: Journal entry for the sale of fixed assets on loss: Debit the cash account for the amount received,…
Q: Diaz Company owns a machine that cost $125,400 and has accumulated depreciation of $92,500. Prepare…
A: Answer 1) Date General Journal Debit Credit Jan'1 Cash $ 16,300…
Q: erry purchased a machine for $15,000; the seller is holding the note. Terry paid $2,500 for the…
A: Assets means the resources which is owned by business and used in business for earning profits.…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Cottrell incurred the following costs related to its office building. You can assume all costs were paid in cash. (You do not need to record any depreciation related to the office building.) Installed a second air conditioner because it was determined that one air conditioning unit could not sufficiently cool the building, $7,000. Repaired and painted wall damage, $800. Replaced the building roof which was estimated to have a remaining life of less than 5 years, $37,000. The new metal roof should last a minimum of 25 years. Paid property taxes, $9,000.East Mill Pizzeria is closing its business. It sold its two-year- old pizza ovens to Marco's Italian Restaurant for $600,000. Originally, East Mill acquired the pizza ovens at a cost of $800,000. The ovens had an estimated useful life of 10 years, an estimated residual value of $50,000, and were depreciated using straight-line depreciation. Complete the requirements below for East Mill Pizzeria. Required: 1. Calculate the balance in the accumulated depreciation account at the end of the second year. Accumulated depreciationNew Deli is in the process of closing its operations. It sold its three-year-old ovens to Sicily Pizza for $283,600. The ovens originally cost $378,000, had an estimated service life of 10 years, had an estimated residual value of $23,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Deli. 3. What is the gain or loss on the sale of the ovens at the end of the third year? Gain/Loss On sale
- Amelia’s business goes bankrupt this year. To close her business, Amelia starts by selling off her business assets. Below are the asset disposition transactions: Assets Purchased Date Cost Sold date Sold price Delivery car 5/1/23 30k 12/31/23 25k Furniture 3/20/20 40k 12/31/23 20k Equipment 4/1/20 110k 12/31/23 100k Land 1/1/22 150k 12/31/23 180k Assume there is no Section 179 and bonus depreciation. Use MACRS only for depreciation. Show detailed calculation and explanation a) Calculate total accumulated depreciation of each asset until the sold date (12/31/23). b) Calculate the adjusted basis for each asset c) Calculate the gain/loss for each asset d) Point out the exact character of gain/loss for each asset gain/loss (ex: Ordinary, pure 1231, 1245, 1250, etc.) e) Calculate the Net 1231 Gain/Loss Hint: Be aware of 1245 Depreciation recapture and 1231 lookback rules Hint: Review textbook chapter on this. In the year of disposition, under half-year convention, only ½ of MACRS…Diaz Company owns a machine that cost $125,400 and has accumulated depreciation of $90,900. Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return.2. Diaz sold the machine for $17,500 cash.3. Diaz sold the machine for $34,500 cash.4. Diaz sold the machine for $41,300 cash. Journal entry worksheetBuckley, an individual, began business two years ago and has never sold a §1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Original Cost Asset Computers $ 6,000 Machinery Furniture Building 10,000 20,000 100,000 Accumulated Depreciation $ 2,000 4,000 12,000 10,000 Gain/Loss $ (3,000) (2,000) 7,000 (1,000) Assuming Buckley's marginal ordinary income tax rate is 32 percent, answer the questions for the following alternative scenarios: b1. Assume that the amount realized increased so that the building was sold at a $6,000 gain instead. What is the amount and character of Buckley's gains or losses for the current year? b2. Calculate Buckley's tax liability or tax savings for the year. Complete this question by entering your answers in the tabs below. Req b1 Req b2 Assume that the amount realized increased so that the building was sold at a $6,000 gain instead. What is the amount and character of…
- Dana forms a small manufacturing company. Her company places the following ng properties into service during the year, on the dates indicated: Type of property Date placed in service Cost_____ Business building April 6 $275,000 Furniture June 5 $57,000 Machinery September 2 $65,000 Computer December 27 $25,000 She chooses not to do any Section 179 expense, and also elects not to take bonus depreciation. She uses MACRS depreciation. Calculate the first year depreciation on the building, and also on the machinery:Hot Dogs exchanges long-term assets with Lizzy's Lemonade. Nate receives a delivery truck and gives up a piece of machinery. The fair value and book value of the machinery were $31,000 and $20,000 (original cost of $31,000 less accumulated depreciation of $11,000), respectively. Since the delivery truck was worth $35,000, Nate paid an additional $4,000 in cash to Lizzy. Record the exchange for Nate's Hot Dogs. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the exchange for Nate's Hot Dogs. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journalEast Mill Pizzeria is closing its business. It sold its two-year-old pizza ovens to Marco's Italian Restaurant for $600,000. Originally, East Mill acquired the pizza ovens at a cost of $800,000. The ovens had an estimated useful life of 10 years, an estimated residual value of $50,000, and were depreciated using straight-line depreciation. Complete the requirements below for East Mill Pizzeria. 4. Record the sale of the ovens at the end of the second year (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 Record the sale of ovens. Note: Enter debits before credits, Transaction General Journal Debit Credit Record entry Clear entry View general journal
- Diaz Company owns a machine that cost $126,300 and has accumulated depreciation of $91,700. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $17,000 cash. Diaz sold the machine for $34,600 cash. Diaz sold the machine for $41,200 cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $640,000. The ovens originally cost $844,000, had an estimated service life of 10 years, had an estimated residual value of $54,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. 2. Calculate the book value of the ovens at the end of the second year. Book value ►► F10 888 FA FB * ES F7 吕口 # $ % 7 8 9 2 3 4 5 P W E R Y G H K L S F > C V N M command ommand D.On April 12, 2020, Suzanne bought a computer for $20,000 for business use. This was the only purchase for that year. Suzanne used the most accelerated depreciation method available but did not apply Sec. 179 or bonus depreciation. Suzanne sells the machine in 2021. The depreciation on the computer for 2021 is a. $2,000. b. $3,200. c. $4,000. d. $6,400.