January 1, 2016, Wheeler, Inc. purchased some equipment for $3,900. The equipment had an estimated life of five years and an expected residual value of $200. On July 1, 2018, the equipment was sold for $1,000. Wheeler uses straight-line depreciation. What was the amount of the loss or gain recognized in the sale?   Group of answer choices   $1,000 gain   $1,850 gain   $1,050 loss   $3,900 loss    Please show all step by step calculation

Q: On July 1, 2021, Hale Kennels sells equipment for $233000. The equipment originally cost $596000,…

A: Introduction:- The following formula used to calculate depreciation usi g straight line method as…

Q: Mazaya Company purchased equipment on January 1, 2010, at a total invoice cost ofR.O. 400,000. The…

A: Annual depreciation = ( cost of the assets - residual value) / Life of the assets = (RO 400,000 - RO…

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A: Depreciation- Depreciation is thus the diminish in the price of assets and the process used to…

Q: Assume that Bilal company purchased an asset for OMR 10000 on 1 Jan 2014. The company charging OMR…

A: Solution:- Calculation of the gain or loss on sale of asset as follows under:-

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A: Solution: depreciation rate - SLM = 1/4 = 25% Depreciation rate - DDB = 25%*2 = 50% Depreciation for…

Q: Buggy Company purchased equipment on January 1, 2020, for $200,000. The residual value is $20,000…

A: Double declining balance depreciation involves depreciating the asset at a double rate on a…

Q: The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition,…

A: Depreciable cost=Cost-Salvage value=$18,000-$5,000=$13,000

Q: Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($9,800 - $1,400)…

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A: As per the double-declining method, the depreciation is charged at a double rate of depreciation in…

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A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: cember 31, 2021, Jaco uld Jacob Inc. record o

A: Answer : Depreciation per year = ($48,000 - $8000) / 8 = $5,000 Truck price : On 31 Dec.2019…

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A: From January 2, 2018 to December 31, 2020 = 3 years   Annual depreciation = ($44,000 - $4,000) / 8…

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A: Annual depreciation = (Cost of the assets - Residual value) / Life of the assets

Q: On January 1, 2015, Minco Coportation purchased, for $100,000, equipment having a useful life of the…

A: Depreciation = Total Cost of Equipment - Salvage ValueUseful life

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A: The reduction in the value of an asset during its life is referred to as depreciation. An…

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A: The journal entries are prepared in the book by debiting one or more accounts and crediting one or…

Q: Duck Pond Golf Club purchased equipment on January ​1, 2024​, for $16,979. Suppose Duck Pond Golf…

A:

Q: On January 1, 2014, Tanaka, Inc. purchased equipment for $27,000. Tanaka uses straight-line…

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A: The amount of gain or loss on machinery sale or any other asset  is evaluated with the difference in…

Q: On August 1, 2015, Toy Inc. purchased a new piece of equipment that cost $25000. The estimated…

A: Asset disposal : This involves removing assets from the accounting records.The disposal is…

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A: Depreciation expense is part of cost of the asset charged as expense in the income statement.…

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A: Depreciation per Year = (Historical cost - Residual Value)/Useful life  It is pertinent to note that…

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A: Loss on sale of assets is the difference between carrying value of assets and sale value of assets.

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A: Depreciation is used to record expenses of asset over the period of useful life of asset.…

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A: Accumulated depreciation is the amount of all depreciated amount of asset up to at any given time.…

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A: The gain or loss is calculated as the difference between sale value and book value of the assets.

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A: Depreciation:   It is a non-cash expense. This is the decrease in the value of a fixed asset…

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A: The objective of the question is to calculate the book value of the van at the end of 2019 using the…

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A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

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A: Formula: Gain or loss on sale of Asset = Sale value - Book value

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.