On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000and accumulated depreciation of $ 60000. The company uses the straight linemethod. The equipment has a useful life of 10 years and a residual value of $30000. The equipment was sold on July 1, year 1 for $ 150000.Calculate the gain or loss on disposal. If the amount is a gain, enter the answer as apositive amount below (i.e. 20000). If the amount is a loss, enter the answer asnegative amount below (i.e. -20000). Round your final answer to the nearest dollar.

The objective of the question is to calculate the gain or loss on the disposal of a piece of…

Answered: On January 1, year 1 ABC. Ltd. had a…

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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On January 1, 20x0, a company purchased a delivery truck for $30,000. They estimated the useful life of the truck to be 6 years, and the salvage value to be $6,000. On July 1, 20x5, they sold the truck for $7,400. Assuming the company uses straight line depreciation and records depreciation expense monthly, calculate the gain or loss associated with selling the truck.
2.
Susquehanna Company purchased an asset at the beginning of the current year for $250,000. The estimated residual value is $25,000. Susquehanna estimates that the asset will be used for 10 years and uses straiglt-line depreciation. Calculate the depreciation expense per year.
On January 1, 2022, Betty DeRose, Inc. purchased equipment for $86,000. The equipment was assigned a useful life of 12 years and a salvage value of $5,300. On January 1, 2026, Betty DeRose decided the life of the equipment should be changed from 12 to 18 years with a salvage value of $3,800 at the end of the 18 years. Betty DeRose uses the straight-line depreciation method to calculate depreciation on its long-term assets. Calculate the amount of depreciation expense recorded on the equipment for 2026.
Perdue Company purchased equipment on April 1 for $59,940. The equipment was expected to have a useful life of three years, or 4,320 operating hours, and a residual value of $1,620. The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 720 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 b. Units-of-activity method Year Amount Year 1 $fill in the blank 5 Year 2 $fill in the blank 6 Year 3 $fill in the blank 7 Year 4 $fill in the…
An asset owned by PT X has the following information: initial cost = $10,000, depreciation life = 5 years, and S (salvage value) = 0. Use the SL and Te = 48% methods to tabulate CFAT. Gross income minus expenses is $5000 per year. The asset has a salvage value at year 6 of $3075. Assume income and expenses have the same value up to one year after the end of their depreciation period.
Keller Industries uses the straight-line depreciation method. One asset had been purchased for $6,000. Annual depreciation expense was $600. after considering residual value of $1,000. What was the approximate life of the asset? a. 5.0 years b. 8.3 years c. 9.5 years d. 10.2 years
An asset was purchased for $70,000 and originally estimated to have a useful life of 10 years with a residual value of $3,800. After 2 years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,520. a. Determine the amount of the annual depreciation for the first 2 years. $ b. Determine the book value at the end of Year 2. $ c. Determine the depreciation expense for each of the remaining years after revision.
Company A bought a building for OMR.73,000, which has the expected useful life of eight years and a residual value of OMR.4,000 at the end of that time. If depreciation is to be provided using the Straight-line method, the net book value after two years will be: A) OMR. 55750 B)OMR. 44160 C)OMR. 54750 D)OMR. 49285
Company A bought a building for OMR 36,500, which has the expected useful life of four years and a residual value of OMR.2, 000 at the end of that time. If depreciation is to be provided using the Straight-line method, the net book value after two years will be: a. OMR. 24, 750 b. OMR. 20, 285 c. OMR. 19, 250 d. OMR. 22, 150
On Oct 1, 20X1, ABC Company acquired an equipment for P102,000. Estimated residual value is P2,000 with an estimated life of 4 years. ABC uses the sum-of-years' digit method. How much is the accumulated depreciation at Dec 31, 20X3?
Concord Corporation purchased a piece of equipment for $85,200. It estimated an 5-year life and $2,200 salvage value. At the end of year 4 (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $17,620.Compute the revised depreciation, assuming Concord uses the straight-line method. Revised annual depreciation $enter the revised annual depreciation in dollars

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