The Galley purchased a property two years ago at a cost of $19,800, and the firm uses a three-year straight line depreciation method. The firm no longer uses this property so is selling it today at a price of $13,500. What is the amount of the pretax profit on the sale? A. 11140.48 B. 6900 C. 10500 D. 10702.4

The Galley purchased a property two years ago at a cost of $19,800, and the firm uses a three-year straight line depreciation method. The firm no longer uses this property so is selling it today at a price of $13,500. What is the amount of the pretax profit on the sale? A. 11140.48 B. 6900 C. 10500 D. 10702.4

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sturdivant Company owns an executive plane that originally cost $1,280,000. It has recorded straight‑line depreciation on the plane for seven full years, calculated assuming a $160,000 expected salvage value at the end of its estimated 10‑year useful life. Sturdivant sells the plane at the end of the seventh year for $200,000. Calculate the gain or loss on the sale of the plane. (Round your answer to the nearest whole number. If a loss, type a minus sign “-” at the beginning of your answer; do not include a space after the minus sign. Do not include a $ sign.)
In 2000, Paradise Condo Inc. bought a new apartment building that was rented out to families on June 21st, 2000. The purchase cost was 697,798 dollars and in addition it had to spend 13,622 dollars remodeling the space. Paradise Condo estimated that in 2030 the building would have a net salvage value of $100,000. Using the US Straight Line Depreciation Schedule, compute the value of depreciation recorded in the accounting books in the year 2000. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas) You Answered 20,380.67 Correct Answer 14,012.84 margin of error +/- 10
XL Co. owns a machine purchased a machine 4 years ago for OMR 80,000. The accumulated depreciation on the machine to date is OMR 32,000. Depreciation rate is 10% per annum straight line method. XL Co. can sell the machine to another manufacturer for OMR 50,000. In order to make the sale, XL Co. must incur a transportation cost of OMR 2000. If XL Co. replaces the machine with a new version, it would cost OMR120,000. The cash flows from existing machine are estimated to be OMR 25,000 for the first two years and OMR 20,000 for the remaining 4 years of the machine’s life. The discount rate at 10 % is: - Year -1 0.909, Year -2 0.826, Years- 3 to 6 inclusive 2.619 (annuity rate) Calculate the value of machine under the four methods identified in the four possible measurement bases with clear steps and calculations .
If an item is capitalized why do you think different depreciation methods are allowed? Does the depreciation method chosen impact Net Income in the short term? What about over the life of the asset? Assume you have an asset with original cost of $150,000 and accumulated depreciation of $30,000 when you spend $10,000 on the asset. If the $10,000 is an ordinary repair what is the Book Value Before and the Book Value after the $10,000 expenditure? If the $10.000 expenditure is an Extraordinary Repair (extends the life of the asset) and is recorded as a debit to Accumulated Depreciation and a credit to Cash What is the Book Value Before and the Book Value after the $10,000 expenditure? if the expenditure is a Betterment (improves the function of the asset) and is recorded as a debit to the asset and a credit to Cash. What is the Book Value Before and the Book Value after the $10,000 expenditure?
The historical cost of land and building of Airbag Ltd that purchased three years ago are $500 000 and $2000 000 respectively. The building is depreciated using the straight- line method over a 20-year useful life with no residual value and land assume to have an indefinite useful life. Airbag Ltd decides to switch to a revaluation model for Building. The fair value of the building is $1 300 000 and the tax rate is 25 percent (25%). As a result of revaluation, the building's useful life increases to 25 years. REQUIRED Provide the journal entries to record the revaluation.
Two years ago, ABC Co. purchased some equipment for $500,000, and the equipment falls in the MACRS three-year property class. What is the book value of the equipment at the end of year two, assuming the following depreciation rates? Year 1: 33% Year 2: 45% Year 3: 15% Year 4: 7% 00 O $110,000 O $465,000 O $35,000
Sandhill Motor Corporation bought equipment on January 1, 2025. The equipment cost $340000 and had an expected salvage value of $65000. The life of the equipment was estimated to be 4 years. The depreciable cost of the equipment is O $275000. O $68750. O $65000 O $340000.
Please solve this problem
Jake parchased a $235,000 crane for his constraction business. He sold the crane for $175,000 after taking $115,000 of depreciation. Assume take is What is the amount of gain or loss on the sale?
Hampton Inc. purchased a machine to use in its business. The machine is estimated to have an economic life of 10 (ten) years before it becomes obsolete. The company expects to use the machine for 4 (four) years before it sells the machine to another company. Hampton uses the straight-line depreciation method. Question: How many years should Hampton depreciate this asset over? (4,7,10, or 14)
Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machinewas purchased for R.O:120,000 on January 1, 20o07, and was depreciated on a straight-line basis for 1o years with no residual value. f the machine was sold for R.O 33.000, what was the amount of the gain or loss recorded at the time of the sale? Select one O a RO 69,00. b. RO 27.000. O CRO33,00. O d RO 81,00.
John Morse Corporation buys a van for $16,000. The estimated life of the van is four years. The residual value of the van is $4,000. After two years, the van is sold for $8,000. What was the difference between the book value and the amount received from selling the van if John used the straight-line method of depreciation?

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