Tom Ltd has control over Holland Ltd. Tom sold an equipment to Holland for $3,800,000 in January 20X5. The equipment was 3 years old when sold, and had cost Tom $4,500,000 to buy, with expected residual value $500,000. The residual value and remaining useful life of the equipment did not change. The equipment had been depreciated by Tom at 10% p.a. straight-line. The amount of the unrealised gain/loss on the sale was: A. $500,000 gain B. $700,000 gain C. $200,000 loss D. $700,000 loss

Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…

A: Answer to question a. Purchase cost of warehouse $65,000 Less: Depreciation claimed till year 0…

Q: Norse Company acquired a new machine on January 15 20X1. It sold the machine October 15 20X2…

A: A loss occurs when a corporation sells an item for much less than the amount invested to acquire the…

Q: During the current year, Matrix Homes disposed of plant assets in the following transactions:…

A: List price is the price quoted by the manufacturer for the assets to be sold. The price to be…

Q: Brioche Incorporated is a private company that uses IFRS for financial reporting. The company…

A: Under U.S. Generally Accepted Accounting Principles (GAAP), changes in depreciation due to changes…

Q: ABC Corp uses the double declining balance method to depreciate a machine purchased on June 30, 20X1…

A: Depreciation:   It is the reduction in the value of the asset over the period. This includes normal…

Q: Sparkling Company uses IFRS. After 3 full years of use, the Sparkling Company revalues equipment…

A: The correct answer is:$810,000 unrealized gain in revaluation surplus reported in other…

Q: Required: 1. Prepare the journal entry to record the purchase.  2. Prepare the year end adjusting…

A: Elimination Method: Under this method, we eliminate accumulated deprecation from Machine A/c and…

Q: [The following information applies to the questions displayed below] Greenscape Landscaping…

A: GAIN OR LOSS ON SALE OF ASSETS Profit or loss incurred on the sale of equipment occurs when the…

Q: On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The…

A: Machine loose the value as machine are being used more and more but some time machine failed they…

Q: Wrexder plc bought machinery for £154,000. The machinery has an estimated useful life of 4 years and…

A: Depreciation :— It is the decrease in the value of asset due to continuos use of asset.    Straight…

Q: Required information [The following information applies to the questions displayed below.] Onslow…

A: Depreciation is the reduction of the cost of an asset, which can be computed in different ways such…

Q: Kardashian Ltd. purchased a building in Oshawa in 20X5 for $1,500,000. Straight line depreciation…

A: This question deals with the concept of depreciation. Depreciation is a reduction in value of asset…

Q: year three, Augie's managers concluded that the total useful life would be What is the amount of…

A: Depreciation is charged every year, based on the estimated useful life and the residual value of the…

Q: Gupta Co purchased a building on 30 June 19X9 for $250,000. At the date of purchase, Gupta estimated…

A: Depreciation refers to the cost of machinery that is expenses during the life of the asset due to…

Q: If 40,000 units were produced in 20X1 and 60,000 were produced in 20X2, what amount of accumulated…

A: The correct option is  C. $150,000

Q: On January 1, year 1 ABC. Ltd. had a piece of equipment with a cost of $ 150000 and accumulated…

A: Depreciation means the amount of normal wear or tear of the assets due to usage or passage of time.…

Q: 2. Soft Oil Company has an ORI in an unproved property for which it paid $80,000. The ORI has not…

A: The gain on the sale of an asset arises when the selling price is more than the cost. When…

Q: On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machine…

A: The asset held for disposal is measured on reporting date at the carrying amount or fair value less…

Q: 7. Cheesecake Factory Restaurant Company purchased equipment that cost $520,000. It had an estimated…

A: 1. COST :  = $520,000 2. CALCULATION OF DEPRECIATION FOR 3 YEARS USING STRAIGHT LINE METHOD  :  =…

Q: nge an old equipment for a new equipment.The cost and accumulated depreciation of the old equipment…

A: The adjusted net asset method is a business valuation strategy that modifies a company's reported…

Q: The Bomb Pop Corporation sold ice cream equipment for $18,500. The equipment was originally…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: On January 1, 2012, Jungle Company sold a machine to Safari Company for $30,000. The machine had an…

A:

Q: A company acquired equipment that cost $12,000 by paying $1,000 cash and obtaining a loan of…

A: Annual Depreciation = Total Cost of Asset - Salvage ValueUseful life

Q: Tracker Inc. purchased equipment at a cost of $567,158. The equipment's estimated useful life is 9…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Delso Company purchased the following on January 1, 20x1: ⚫ Office equipment at a cost of $47,000…

A: Solution:-The question given is a detailed accounting problem that involves calculating depreciation…

Q: Wildhorse Company owns equipment that cost $1,062,000 and has accumulated depreciation of $448,400.…

A: Impairment loss refers to an amount that is more than the recoverable amount from the carrying value…

Q: Gingerbread Corp had been depreciating a delivery truck for 3 years when it decided to sell the…

A: Given: Cost of truck = $40,000 Depreciation = $7,000

Q: XL Co. owns a machine purchased a machine 4 years ago for OMR 80,000. The accumulated depreciation…

A:

Q: Alayna Ltd bought a machine on 1 January 20X2 for $70,000. The useful life of this machine was…

A: Impairment Loss is the loss arising out of downward revaluation of an asset below its book value.…

Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…

A: The question is based on the concept of Financial Accounting.

Q: estimated residual value of life would be four years, rather than five. There was no change in the…

A: Depreciation is calculated based on the estimates like useful life, salvage value and other…

Q: ABC Corp uses the double declining balance method to depreciate a machine purchased on Jan 1, 20X1…

A: >Accounting principle states that the cost of the long term assets (like equipment) is to be…

Q: CCC Manufacturing Inc. sold equipment that it uses in its business for $110,000. CCC bought the…

A: Capital gain occurs when the sale price exceeds the adjusted value of the equipment. Capital loss…

Q: piece of earth-moving equipment was purchased at a cash price of P25,000. The life of this equipment…

A: Sinking fund method is one of the method of finding out depreciation and it depends on the amount…

Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…

A: The correct answer for the above questions is given in the following steps for your reference.

Q: Smith Company is an IFRS reporter. After 3 full years of use, the Smith Company revalues equipment…

A: The objective of the question is to calculate the new carrying value of the asset after revaluation.

Q: Delso Company purchased the following on January 1, 20x1: Office equipment at a cost of $54,000 with…

A: Calculate the gain on the sale: Gain=Selling Price−Net Book Value$649780-$428500=$221280