Accumulated depreciation on the equipment Nixon Corporation recorded aloss of $7,200 when it soldequipment that originally cost$93,000 for $21,500. Accumulateddepreciation on the equipmentmust have been.

Explanation of Book Value:Book value refers to the net value of an asset recorded on the company's…

Answered: Nixon Corporation recorded a loss of…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

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Problem 32CE

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Morey, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Morey completed the following transactions: Jan 4 Traded in equipment with accumlated depreciation of $64,000 (cost of $134,000) for similar new equipment with a cash cost of $175,000. Recieved a trade-in allowance of $72,000 on the old equipment and paid $103,000 in cash. Jan 29 Sold a building that had a cost of $650,000 and had accumulated depreciationof $140,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $220,000. Morey received $125,000 cash and a $379,625 note receivable. Oct 30 Purchased land and a building for a single price of $360,000 cash. An independent appraisal valued the land at $160,800 and the building at $241,200. Dec 31 Recorded depreciation as follows: Equipment has an expected…
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Weird Co. uses straight-line depreciation for its property, plant, and equipment, which, stated at cost, consisted of the following: 12/31/19 12/31/18Land P 250,000 P 250,000Buildings 1,950,000 1,950,000Machinery & equipment 6,950,000 6,500,000TOTAL 9,150,000 8,700,000Accumulated depreciation 4,000,000 3,700,000TOTAL P 5,150,000 P 5,000,000 Weird’s depreciation expense for 2019 and year 2018 was P550,000 and P500,000, respectively. What amount was debited to accumulated depreciation during 2019 because of property, plant, and equipment retirements?
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Nixon Corporation recorded a loss of $7,200 when it sold equipment that originally cost $93,000 for $21,500. Accumulated depreciation on the equipment must have been.