Metalcrafts Inc. Selected information from the company's financial records is presented below: Equipment, December 31, 2019 Equipment, December 31, 2020 Accumulated depreciation, December 31, 2019 Accumulated depreciation, December 31, 2020 $300,000 400,000 80,000 60,000 During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. Refer to Metalcrafts, Inc. What amount would be reported as the cash proceeds from the sale of equipment? a. $50,000 Ob. $20,000 Oc. $10,000 Od. $30,000

Metalcrafts Inc. Selected information from the company's financial records is presented below: Equipment, December 31, 2019 Equipment, December 31, 2020 Accumulated depreciation, December 31, 2019 Accumulated depreciation, December 31, 2020 $300,000 400,000 80,000 60,000 During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. Refer to Metalcrafts, Inc. What amount would be reported as the cash proceeds from the sale of equipment? a. $50,000 Ob. $20,000 Oc. $10,000 Od. $30,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

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Metalcrafts Inc.
Selected information from the company's financial records is presented below:
Equipment, December 31, 2019
Equipment, December 31, 2020
Accumulated depreciation, December 31, 2019
Accumulated depreciation, December 31, 2020
$300,000
400,000
80,000
60,000
During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was
recognized on the sale of the equipment. This was the only equipment sale during the year.
Refer to Metalcrafts, Inc. What amount would be reported as the cash proceeds from the sale of equipment?
a. $50,000
Ob. $20,000
Oc. $10,000
Od. $30,000

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