Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was purchased for R.O:120,000on January1, 2007, and was depreciated on a straight-line basis for 10 years with no residual value If the machine was soldfor R.O 33,000, what was the amount of the gain or loss recorded at the time of the sale?Select one.a R.O 69,000.b. RO.27,000.O CRO33,000d. RO 81,000.

Gains: Gains are the profits earned from non-operating activities of a business like sale of land,…

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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A model SK-30 was purchased 2 years ago for $1600; it has been depreciated by straight-line depreciation using a 4-year life and zero salvage value. Because of recent innovations, the current price of the SK-30 is $995. An equipment firm has offered a trade-in allowance of $350 for the SK-30 on a new $1200 model EL-40. Some discussion revealed that without a trade-in, the EL-40 can be purchased for $1050. Thus, the originally quoted price of the EL-40 was overstated to allow a larger trade-in allowance. The true current market value of the SK-30 is probably only $200. In a replacement analysis, what value should be assigned to the SK-30?
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:
5 On January 1, 2017, Cake Corporation purchased for P150,000, equipment having a useful life of ten years and an estimated salvage value of P8,000. Bennett has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2023, the equipment was sold for P28,000. As a result of this sale, Cake should recognize a gain (loss) of If you answer is loss, here is the format (PXXX,XXX). Example (P123,456) *
Mazaya Company has decided to sell one of its old machines on June 30, 2011 The machine was purchased for RO:120,000 on January 1, 20o07, and was depreciated on a straight-line basis for 10 years with no residual value f the machine was sold for R.O 33.000, what was the amount of the gain or loss recorded at thetime of the sale? Select one O a RO 69,00. b. RO 27.000. O CRO33,00 O d RO 81,000.
On January 2, 2017, Snug Clothing Consignments purchased showroom fixtures for $19,000 cash, expecting the fixtures to remain in service for five years. Snug has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On October 31, 2018, Snug sold the fixtures for $8,200 cash. Record both depreciation expense for 2018 and sale of the fixtures on October 31, 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that 2017 depreciation was recorded and posted in 2017.) Begin by recording the depreciation expense for January 1, 2018 through October 31, 2018. Date Oct. 31 Accounts and Explanation Debit Credit
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XYZ Company purchases a new machine for $50,000 with a useful life of 5 years and no salvage value. The company uses straight-line depreciation. Calculate the annual depreciation expense for the machine.
Can you also show me how to do this one? 12. XYZ Co. purchased new trucks at the beginning of 2018 for $600,000. The trucks had an estimated life of four yearsand an estimated residual value of $50,000. They use straight-line depreciation. At the beginning of 2019, XYZ sold thetrucks for $480,000 and purchased new trucks for $700,000.A. Calculate book value of the trucks at the end of 2018.B. Calculate the gain (loss) on the sale of the trucks at the beginning of 2019. Calculate the amount and indicate if it is a gain or a loss.
Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was purchased for R.O:120,000 on January1,2007, and was depreciated on a straight-line basis for 10 years with no residual value. If the machine was sold for R.O 33,000, what was the amount of the gain or loss recorded at the time of the sale? Select one. O a RO 69,00. b RO 27.000. O CRO33,000. d RO 81,000.
Nuts-R-Us, Inc. purchased nut-shelling equipment at a total cost of $80,000. The equipment was depreciated by using MACRS with a recovery class of 3 years and an anticipated end-of-useful-life value of $8000. The company has decided the equipment is no longer needed after two years and wishes to determine the minimum value it can accept for the equipment (that is, the lowest value that will result in no loss on the sale). Find the minimum selling price for the equipment.
Burrell Company purchased a machine for $33,000 on January 2, 2016. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $16,500 each year. The tax rate is 25%. Required: Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is the company's only asset.
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