Answer this general accounting problem (7 pts) Som Resources, Inc. sold one of its drilling platforms that waspurchased on January 1, 2010, for $120,000 and wasdepreciated on a straight-line basis over a 13-year life. There wasno salvage value associated with the drilling platform. If thedrilling platform was held for 11 years and sold for $65,000,what was the amount of gain or loss recorded at the time of thesale?

Step 1: Calculate Annual Depreciation ExpenseThe asset was purchased for $120,000 and has a 13-year…

Answered: Som Resources, Inc. sold one of its…

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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The Johnson Company bought a truck costing $24,000 two and a half years ago. The truck's estimated life was four years at the time of purchase. It was accounted for by using straight line depreciation with zero salvage value. The truck was sold yesterday for $19,000. What taxable gain must be reported on the sale of the truck?
Bonita Industries purchased a new machine on May 1, 2012 for $561600. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $30000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2021, the machine was sold for $67800. What should be the loss recognized from the sale of the machine?
Answer this general accounting question
On February 1, 2006, Mason Company purchased a building for $359,000. The building was assigned a useful life of forty years and a salvage value of $11,000. XYZ Company uses the straight-line depreciation method to calculate depreciation on its long-term assets. The building was sold for $121,000 cash on August 1, 2029. Calculate the amount of the loss recorded on the sale. Do not enter your answer with a minus sign in front of your number.
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What was the gain or loss on sale?
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