Solution ON JANUARY 1, 2017, A MACHINE WAS PURCHASEDFOR $12,000. THE MACHINE WAS ESTIMATED TOHAVE A 10-YEAR USEFUL LIFE AND A RESIDUALVALUE OF $500. STRAIGHT-LINE DEPRECIATION ISTO BE USED. ON JANUARY 1, 2019, THE MACHINEWAS THEN EXCHANGED FOR COMPUTEREQUIPMENT WITH A FAIR VALUE OF $10,000.ASSUMING THAT THE EXCHANGE HADCOMMERCIAL SUBSTANCE, HOW MUCH WOULDBE RECORDED AS A GAIN ON DISPOSAL OF THEMACHINE ON JANUARY 1, 2019?

Explanation of Straight-Line Depreciation:Straight-line depreciation is a method of allocating the…

Answered: ON JANUARY 1, 2017, A MACHINE WAS…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 64P

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On January 1, 2020, Nexus Technologies purchased a machine for $15,000. The machine was estimated to have a 10-year useful life and a residual value of $800. Straight-line depreciation is used. On January 1, 2022, the machine was exchanged for office equipment with a fair value of $12,500. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022?
On January 1, 2020, Nexus Technologies purchased a machine for $15,000. The machine was estimated to have a 10-year useful life and a residual value of $800. Straight-line depreciation is used. On January 1, 2022, the machine was exchanged for office equipment with a fair value of $12,500. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022? I want help
On January 1, 2020, Nexus Technologies purchased a machine for $15,000. The machine was estimated to have a 10-year useful life and a residual value of $800. Straight-line depreciation is used. On January 1, 2022, the machine was exchanged for office equipment with a fair value of $12,500. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022? help
Would be recorded as a gain on disposable of the machine on January??
How much would be recorded as a gain on disposal?
The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition, the machine was estimated to have a useful kufe if five years and an estimated salvage of $5,000. Fisher has recorded monthly depreciation using the straigh-line method. On April 1, 2020, the machine was sold for $50,000. What should be the loss recognized from the sale of the machine? a. $0 b. $2,500 c. $5,000 d. $7,500
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On March 10, 2027, Skysong Company sells equipment that it purchased for $203,520 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,808 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, e.g. 15.64 and final answers to O decimal places, e.g. 45,892.) 1. Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base and record depreciation through March 9, 2027.) 2. Depreciation is computed for the full year on the January 1 balance in the asset account. 3. 4. Depreciation for one-half year is charged on plant assets acquired…
A machine cost $1272000, has annual depreciation of $212000, and has accumulated depreciation of $1007000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $291500, it is exchanged for a machine with a fair value of $1431000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at O $1139500. O $1431000. O $1298500. O $1404500.
On August 31, 2019, CAMELLIA Company purchased a new machinery for ₱540,000. The machinery has an estimated useful life of 5 years and depreciation is computed using the SYD method. Estimated salvage value of the machine is ₱60,000. Questions: What is the total accumulated depreciation on December 31, 2020? If CAMELLIA decides to change its depreciation method to straight-line at the start of 2021, what is the depreciation expense for the year ended December 31, 2021? * Present solutions.

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