On May 1, 2021, Equipment with a Cost of $50,000 and Accumulated Depreciation of $40,000 is exchanged for similar Equipment with a cost of $60,000 and a trade in allowance of $15,000. What is the amount of the Gain or Loss on the Exchange? Gain of $5,000 bLoss of $5,000 Gain of $10,000 Od Loss of $10,000

On May 1, 2021, Equipment with a Cost of $50,000 and Accumulated Depreciation of $40,000 is exchanged for similar Equipment with a cost of $60,000 and a trade in allowance of $15,000. What is the amount of the Gain or Loss on the Exchange? Gain of $5,000 bLoss of $5,000 Gain of $10,000 Od Loss of $10,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

During 2019, ABC Co. sold for P21,000 some of its plant assets costing P150,000 and having accumulated depreciation of P119,000 at date of sale. The sale of the plant assets should be shown on ABC Co.’s statement of cash flows (indirect method) for the year ended December 31, 2019, as *a. a deduction from net income of P10,000 and a P21,000 increase in cash flows from financing activities b. an addition to net income of P10,000 and P21,000 increase in cash flows from investing activities c. a deduction from net income of P11,000 and P21,000 increase in cash flows from investing activities d. an addition of P21,000 to net income e. answer not given
On January 1, 2019, Vaughn Inc. purchased equipment for $ 44900. The company is depreciating the equipment at the rate of $ 710 per month. At January 31, 2020, the balance in Accumulated Depreciation is O $9230. O $35670. O $710. O $8520.
How is 165,000 computed for the additional accumulated depreciation? Trade in Allowance ₱400,000 Less: Book value Cost ₱1,300,000 Less: Accumulated Depreciation (₱660,000 + ₱165,000) 825,000 475,000 Loss on Trade In - October 1, 2021 -₱75,000
An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for P4,000. A new cooler with marked price of P200,00 was purchased on February 10, 2021. Freight charge of P3,000 and installation cost of P6,000 were paid. How much is the gain (-loss) from the sale of the old cooler?
Kansas enterprises purchased equipment for $78,500 on January 1, 2018. The equipment is expected to have a 10 year life, with a residual value of $8850 at the end of the 10 years. Using the straight line method depreciation expense for 2019 in the book value add December 31, 2019 would be:
LILY Company purchased machinery on January 1, 2020. It has an estimated useful life of four years and a residual value of ₱500,000. The machine is being depreciated using SYD Method. The depreciation applicable to this fixed asset for 2021 is ₱1,200,000. What was the acquisition cost of the machinery? A. ₱ 3,000,000 B. ₱ 3,500,000 C. ₱ 4,000,000 D. ₱ 4,500,000
A non-current asset (cost $10,000, depreciation $7,500) is given in part exchange for a new asset costing$20,500. The agreed trade-in value was $3,500. The income statement will include?A A loss on disposal $1,000B A profit on disposal $1,000C A loss on purchase of a new asset $3,500D A profit on disposal $3,50
A machine cost $1128000, has annual depreciation of $188000, and has accumulated depreciation of $893000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $258500, it is exchanged for a machine with a fair value of $1269000 and the proper amount of cash is paid. The exchange had commercial substance.The gain to be recorded on the exchange is
On July 1, 2019, AXS COMPANY acquired an asset for P1,312,500. The asset is being depreciated over a 6-year period using the sum-of-the-years’ digit method. It has a salvage value of P52,500. The asset was sold at the end of 2022 resulting in a gain of P120,000. The selling price of the asset is
An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for P4,000. A new cooler with marked price of P200,000 was purchased on February 10, 2021. Freight charge of P3,000 and installation cost of P6,000 were paid. How much is the gain (or loss) from the sale of the cooler?
On July 1, 2021, Hale Kennels sells equipment for $222000. The equipment originally cost $594000, had an estimated 5-year life and an expected salvage value of $109000. The accumulated depreciation account had a balance of $342000 on January 1, 2021, using the straight-line method. The gain or loss on disposal is $18500 loss. $30000 loss. $18500 gain. $30000 gain
On January 1, 2021, Concord Corporation purchased equipment for $20000. The company is depreciating the equipment at the rate of $800 per month. At January 31, 2022, the balance in Accumulated Depreciation is: $800 debit. $10400 credit. $49600 debit. $9600 credit.