Use the following to answer questions 20 - 22 AJ Construction is in the process of closing its operations. It sold its five-year-old Caterpillar 279C Compact Track Loader for $100,000. The loader originally cost $180,000 and had an estimated useful life of 10 years and an estimated residual value of $40,000. The company uses straight-line depreciation for all equipment. 20. $ Calculate the book value of the loader at the end of the fifth year. 21. $ What was the gain or loss on the sale of the loader at the end of the fifth year; (if loss, put – in front of your answer). 22. Record the sale of the loader at the end of the fifth year.

Use the following to answer questions 20 - 22 AJ Construction is in the process of closing its operations. It sold its five-year-old Caterpillar 279C Compact Track Loader for $100,000. The loader originally cost $180,000 and had an estimated useful life of 10 years and an estimated residual value of $40,000. The company uses straight-line depreciation for all equipment. 20. $ Calculate the book value of the loader at the end of the fifth year. 21. $ What was the gain or loss on the sale of the loader at the end of the fifth year; (if loss, put – in front of your answer). 22. Record the sale of the loader at the end of the fifth year.

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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