Mazaya Company has decided to sell one of its old machines on June 30, 2011 The machine was purchased for RO:120,000on January 1, 20o07, and was depreciated on a straight-line basis for 10 years with no residual value f the machine was soldfor R.O 33.000, what was the amount of the gain or loss recorded at thetime of the sale?Select oneO a RO 69,00.b. RO 27.000.O CRO33,00O d RO 81,000.

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

Answered: Mazaya Company has decided to sell one…

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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Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You are tasked with computing the depreciation schedule and book value for the patent using double declining balance with a switch to SL method (if necessary). Question 1 Part B: Complete the following table to show the depreciation schedule. If it is necessary to switch from DDB to SL depreciation, when the switch occurs, only enter the value of the SL depreciation and enter 0 for the DDB depreciation (eg. when/if the switch occurs, DDB: 0 and SL: X). Enter your answers in the form 1234 (enter 0 for blank table cells). NO DECIMALS Year B-1 (enter either the number with DDB (enter either the number no decimals, or 0 if blank) with no decimals, or 0 if blank) SL (enter either the number with no decimals, or O if blank) DDB or SL? (enter DDB, SL, or 0 if neither applies below! D., (enter either the number with B,…
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On January 1, 2016, D Company acquires for $100,000 a new machine with an estimated useful life of 10 years and no residual value. The machine has a drum that must be replaced every five years and costs $20,000 to replace. The company uses straight-line depreciation. Under IFRS, what is depreciation for 2016? a. $10,000. b. $10,800. c. $12,000. d. $13,200.
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $500,000. The ovens originally cost $690,000, had an estimated service life of 10 years, had an estimated residual value of $40,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. Problem 7-8A Part 4 4. Record the sale of the ovens at the end of the second year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Aa.2
A company purchased a computer that cost $10,000, It had an estimated useful life of 5 years and no residual value. The computer was depreciated by the straight-line method and it was sold at the end of the second year of use for $5,000 cash. The company should record:
Bennie Razor Company has decided to sell one of its old manufacturing machines on January 1, 2020. The machine was purchased for $80,000 on January 1, 2016, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $26,000, what was the amount of the gain or loss recorded at the time of the sale a. $22,000 loss O b. $26,000 gain c. $32,000 gain O d. $54,000 loss
4
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Zorzi Corporation purchased a Machine on January 1, 2017 for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. Compute the depreciation expense for 2017 using the sume of the years didgets method assuming the machine was purchased on October 1, 2017 O $2,500 O $12.000 O S7.500 O $10,000

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