In year 0, Longworth Partnership purchased a machine for $53,000 to use in its business. In year 3, Longworth sold the machine for $42,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,800. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Problem 3-41 Part-a (Algo) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,750?
In year 0, Longworth
Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Problem 3-41 Part-a (Algo)
a. What are the amount and character of the gain or loss Longworth will recognize on the sale?
b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,750?
Gain on Sale -
Gain on the Sale of Assets is revenue earned by the company from the sale of assets over the company's book value. Book Value is the value of the Asset that is derived by deducting accumulated depreciation from the cost of the assets.
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