Jake parchased a $235,000 crane for his constraction business. He sold the crane for $175,000 after taking $115,000 of depreciation. Assume take is What is the amount of gain or loss on the sale?

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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: Larry's car is worth $18,000 after 5 years. When the car was new, it sold for $24,000. What is the…

A: Variables in the question:Cost=$24000Value of car after 5 years=$18000

Q: ABC purchases a piece of equipment of January 1, 2016. The cost of the equipment is $46,000. The…

A: The depreciation expense is charged on the fixed assets as a reduction in the value of the fixed…

Q: I want to correct answer

A: Approach to solving the question:Understanding and Analysis  Detailed explanation: To determine…

Q: Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000…

A: Purchase Price of Machine = 200,000Total Additional Cost = 25,000 + 25,000 = 50,000MACRS…

Q: If Rearden sold the building on April 1, 2015 for $920,000 cash, what is the amount of gain or loss…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On Dec 31, 2019, Benson sold a used backhoe for 1 million cash. The original of backhoe was 5…

A: Here in this question, we are required to determine gain/loss on equipment sales. When sales…

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: An apartment building was acquired in 2012. The depreciation taken on the building was $236,510, and…

A: Formula: Gain or loss = Asset cost - Depreciation amount

Q: Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70%…

A: Formula to compute new machine amount to be recorded:New machine amount = Sale value of the new…

Q: Kwan acquired a warehouse for business purposes on August 30, 2002. The building cost $550,000. Kwan…

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

Q: Don’s Workshop acquired a machine two years ago for $40,000. The depreciation schedule is listed…

A: MACRS depreciation is one of the methods of depreciation of assets that help firms deduct relatively…

Q: Now assume Florence sells another delivery van $3,000. This van was purchased for $30,000 and was…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Car.com bought a Toyota for $28,000. The Toyota has a life expectancy of 10 years with a residual…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

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Q: Ngu owns equipment that cost $97,100 with accumulated depreciation of $66,400. Ngu asks $35,900 for…

A: given that, cost of the equipment = $97100 accumulated depreciation = $66400 sale price of the…

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: Tony Company sells equipment for $20,000 cash. The equipment has a historical cost of $63,000 and…

A: Book value of asset :— It is the difference between historical cost of asset and accumulated…

Q: Tom purchased the following assets for use in his business during the current year: Date Asset Cost…

A: Assets are economic resources or valuable possessions owned by an individual, company, or entity,…

Q: 2. Soft Oil Company has an ORI in an unproved property for which it paid $80,000. The ORI has not…

A: The gain on the sale of an asset arises when the selling price is more than the cost. When…

Q: Date Asset  Cost 12-Jan Car        24,000 4-Feb Equipment        36,000 15-Mar Qualified…

A:

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 $126,500 and has accumulated depreciation of $92,000. Prepare…

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

Q: Need help with this question

A: Step 1: Introduction to the Asset DisposalAsset disposal is the process of selling of fixed asset…

Q: Lopez acquired a building on June 1, 2016, for $1,000,000. Compute the depreciation deduction…

A: Solution Depreciation means to reduction the cost of an asset over its useful life. Depreciation are…

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A: Step 1: Introduction to the Asset DisposalWhen fixed assets are sold or scrapped at the end of their…

Q: Young Corporation bought a car with an estimated life of five years for $25,000. The residual value…

A: Depreciation refers to the reduction in the value of a machine due to use. The amount of…

Q: The Bomb Pop Corporation sold ice cream equipment for $18,500. The equipment was originally…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: An apartment building was acquired in 2013. The depreciation taken on the building was $181,700, and…

A: Depreciation = $181,700Gain on Sale = $54,510

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.