Langley Corporation sold equipment that it purchasedfor $300,000 four years ago. Langley purchased the equipment bypaying $100,000 down and signing a note payable for $200,000. As ofthe date of the sale, Langley Corporation had claimed $187,500 inaccumulated depreciation and it had made $50,000 in principalpayments on the note payable. Langley received $80,000 cash and anote receivable for $100,000 from the purchaser in addition to thepurchaser assuming Langley Corporation's $150,000 note payable.What is Langley Corporation's realized gain or loss on the sale of theequipment?a) $330,000.b) $187,500.c) $67,500.d) $217,500.e) $112,500.Hastings Company has purchased a group of assetsfor $350,000. The assets and their market values are listedas follows:Land$125,000Equipment 75,000Building200,000Which of the following amounts would be debited to theLand account?a. $125,000.b. $109,375.c. $65,625.d. $175,000.

Problem 1Step 1: Calculate the book value of the equipment at the time of sale:Purchase price:…

Answered: Langley Corporation sold equipment that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $72.500. and it has claimed $24,800 of depreciation expense against the building. Required: a. Assuming that Houswirth receives $59,700 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $59,700 compute Houswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Houswirth receives $26.500 in cash in year 0 and a $57,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. Complete this question by entering your answers in the tabs below. Required a Required b Required c Assuming that Hauswirth receives $59,700 in cash for the warehouse, compute the amount…
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