Answer this question On 1 January 2015, York Enterprises purchased a newtruck for $600,000. The estimated scrap value of thetruck is $30,000. The truck is depreciated straight-lineover its useful life of 8 years. On 31 December 2017, YorkEnterprises sold the truck for $450,000 to an employeeof the company.The gain or loss on sale is:a. Gain on sale $63,750.b. Loss on sale $75,000.c. Loss on sale $90,000.d. There is no gain or loss.

Step 1:First calculate the balance of accumulated depreciation on December 31, 2017: Accumulated…

Answered: On 1 January 2015, York Enterprises…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
The gain or loss on sale is
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On 1 January 2011, Y Ltd purchased a new machine for $500,000. Please need answer the general accounting question
Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated using the straight-line method assuming it has a five-year life with a $1,400residual value. Taylor sold the machine on January 1, 2018, for $7,600.Q7-62. What gain or loss should Taylor record on the sale?a. Gain, $800b. Loss, $1,160c. Loss, $520d. Gain, $1,160
On January 1, 2016, Gecho Corporation purchased computer equipment for $23,000. The equipment has an estimated useful life of 4 years and a salvage value of $400. Given this information, if Gecho uses the double-declining-balance method of depreciation and sells the equipment on December 31, 2017, for $250, it will have a a.$3,124 gain b.$250 gain c.$5,500 loss d.$3,600 loss
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 Double Deding Balance Method assuming the machinery was purchased on October 1, 2017 O S2.500 O $5.000 O S7.500 O S10.000
On January 1, 2016, Rexford Company purchased a drilling machine for $11,500. The machines has an estimated useful life of 4 years and a salvage value of $200. Given this information, if Rexford uses double-declining-balance method of depreciation, and sells the machine on December 31, 2017, for $3,000 cash. Then how much will be gain or loss on disposal of this asset? $ 2,750 loss $ 1,800 loss $1,562 gain $ 125 gain
Zorzi Corporation purchased a Machine on January 1, 2017 for S80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. Compute the 2017 depreciation expense using the straight-line method assuming the machine was purchased on September 1, 2017 O s9.000 O s7000 O55,000 O S3.000
Samson Manufacturing Company, a calendar year company, purchased a machine for $65,000 on January 1, 2015. At the date of purchase, Samson incurred the following additional costs: Loss on sale of old machinery $ 1,000 Freight-in 500 Installation cost 2,000 Testing costs prior to regular operation 300 The machine’s estimated salvage value was $5,000, and Samson estimated it would have a useful life of 20 years with depreciation being computed on the straight-line method. In January 2017, accessories costing $3,600 were added to the machine to reduce its operating costs. These accessories neither prolonged the machine’s life nor provided any additional salvage value.
Post Company uses straight- line depreciation for all of its depreciable assets. Post sold a piece of machinery on December 31, 2009, that it purchased on January 1, 2009 for $ 2,000. The asset had a five- year life and zero residual value. Accumulated depreciation was $400. If the sales price of the used machine was $ 1,200, the resulting gain or loss on disposal was which of the following amounts? Gain of $400 Gain of $ 1,200. Loss of $ 400. Loss of $800

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