Testbank Multiple Choice Question 91 Bramble Corp. traded in a manual pressing machine for an automated pressing machine and gave $45500 cash. The old machine cost $476000 and had a net book value of $341000. The old machine had a fair value of $275000. Which of the following is the correct journal entry to record the exchange assuming commercial substance? O Equipment Accumulated Depreciation 656500 135000 Equipment 476000 Cash 45500 Equipment 320500 Loss on Disposal 66000 Accumulated Depreciation 135000 Equipment 476000 Cash 45500 O Equipment 320500 Equipment 275000 Cash 45500 O Cash 45500 Equipment oss on Disposal 275000 66000 Accumulated Depreciation 135000 Equipment 521500

Testbank Multiple Choice Question 91 Bramble Corp. traded in a manual pressing machine for an automated pressing machine and gave $45500 cash. The old machine cost $476000 and had a net book value of $341000. The old machine had a fair value of $275000. Which of the following is the correct journal entry to record the exchange assuming commercial substance? O Equipment Accumulated Depreciation 656500 135000 Equipment 476000 Cash 45500 Equipment 320500 Loss on Disposal 66000 Accumulated Depreciation 135000 Equipment 476000 Cash 45500 O Equipment 320500 Equipment 275000 Cash 45500 O Cash 45500 Equipment oss on Disposal 275000 66000 Accumulated Depreciation 135000 Equipment 521500

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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27 01:05:53 Mc Graw Hill Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is depreciated using the double- declining-balance method. The machine's useful life is estimated to be 5 years with a $2,000 salvage value. The machine's book value at the end of year 2 is: Multiple Choice $15,600 $6,800. $11,200. < Prev 27 of 40 www www Noxt
QUESTION 4 Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of $27,300 as of July 30, 2020. On that date, Cullumber disposes of this equipment. For parts b- d below, enter D for debit or C for credit in the first box and the amount in the second box. a. What is the net book value of the equipment on July 30, 2020? b. Assume Cullumber scraps the equipment as having no value on July 30. What is the gain or loss, if any, that Cullumber should recognize? c. Assume Cullumber sells the equipment for $37,200 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize? d. Assume Cullumber sells the equipment for $18,000 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize?
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Testbank Multiple Choice Question 86 Bramble Corp. purchased a depreciable asset for $698000 on April 1, 2018. The estimated salvage value is $68000, and the estimated useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold? O $252000 O $294000 O $346500 O $388500
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