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

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

FINANCIAL ACCOUNTING
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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Langley Corporation sold equipment that it purchased for $300,000 four years ago. Langley purchased the equipment by paying $100,000 down and signing a note payable for $200,000. As of the date of the sale, Langley Corporation had claimed $187,500 in accumulated depreciation and it had made $50,000 in principal payments on the note payable. Langley received $80,000 cash and a note receivable for $100,000 from the purchaser in addition to the purchaser assuming Langley Corporation's $150,000 note payable. What is Langley Corporation's realized gain or loss on the sale of the equipment? a) $330,000. b) $187,500. c) $67,500. d) $217,500. e) $112,500. Hastings Company has purchased a group of assets for $350,000. The assets and their market values are listed as follows: Land $125,000 Equipment 75,000 Building 200,000 Which of the following amounts would be debited to the Land account? a. $125,000. b. $109,375. c. $65,625. d. $175,000.
Transcribed Image Text:Langley Corporation sold equipment that it purchased for $300,000 four years ago. Langley purchased the equipment by paying $100,000 down and signing a note payable for $200,000. As of the date of the sale, Langley Corporation had claimed $187,500 in accumulated depreciation and it had made $50,000 in principal payments on the note payable. Langley received $80,000 cash and a note receivable for $100,000 from the purchaser in addition to the purchaser assuming Langley Corporation's $150,000 note payable. What is Langley Corporation's realized gain or loss on the sale of the equipment? a) $330,000. b) $187,500. c) $67,500. d) $217,500. e) $112,500. Hastings Company has purchased a group of assets for $350,000. The assets and their market values are listed as follows: Land $125,000 Equipment 75,000 Building 200,000 Which of the following amounts would be debited to the Land account? a. $125,000. b. $109,375. c. $65,625. d. $175,000.
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