QUESTION 18 On Jan. 1, 2012, ABC Corporation placed into service a lift truck that had a capitalized acquisition cost of $22,500, estimated useful life of 16 years, and estimated salvage value of $2,500. On June 30, 2020, ABC sold the used lift truck for $8,475. Accumulated depreciation on the sale date was $10,625. What is the amount of gain or loss that ABC should recognize? Enter a positive number for a gain or a negative number for a loss, e.g., xx or -Xx.

QUESTION 18 On Jan. 1, 2012, ABC Corporation placed into service a lift truck that had a capitalized acquisition cost of $22,500, estimated useful life of 16 years, and estimated salvage value of $2,500. On June 30, 2020, ABC sold the used lift truck for $8,475. Accumulated depreciation on the sale date was $10,625. What is the amount of gain or loss that ABC should recognize? Enter a positive number for a gain or a negative number for a loss, e.g., xx or -Xx.

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

Cop
Required information [The following information applies to the questions displayed below.] Hero Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $86,000 451,000 227,900 205,000 Accumulated Depreciation Book Value $86,000 288,640 179,700 123,000 • Hero purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual Land Building Equipment Patent 0 value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. HERO SANDWICH SHOP December 31, 2024 $(162,360) (48,200) (82,000) • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 3. Calculate the book value for each of the…
kai.3
5 On January 1, 2017, Cake Corporation purchased for P150,000, equipment having a useful life of ten years and an estimated salvage value of P8,000. Bennett has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2023, the equipment was sold for P28,000. As a result of this sale, Cake should recognize a gain (loss) of If you answer is loss, here is the format (PXXX,XXX). Example (P123,456) *
A company sells a long-lived asset that originally cost $200,000 for $50,000 on December 31, 2018. The accumulated depreciation account had a balance of $110,000 after the current year's depreciation of $45,000 had been recorded. The company should recognize a: Multiple Choice $100,000 loss on disposal. $40,000 loss on disposal. $40,000 gain on disposal. $25,000 loss on disposal.
8. Chiz Company
3. What amount should be recognized as gain on reclassification of the equipment in 2023? * Problem A. Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years and no residual value. On December 31, 2022, the entity classified the asset as held for sale. The fair value of the equipment on December 31, 2022 is P3,300,000 and the cost of disposal is P100,000. On December 31, 2023, the fair value of the equipment is P3,800,000 and the cost of disposal is P200,000. On December 31, 2023, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the assets but to continue to use it. Your answer
Please avoid solutions image based thanx
Question No. 20
None
sd
55