Use the information below to answer the questions that follow. Enter your answers using digits only- no dollar signs, commas, or decimal points. The business's year- end is December 31. • Cost of equipment 36000 • Useful life in years 4 • Residual value 0 • Date purchased April 1, 2021 • Date of disposal September 30, 2023 • Cash received on disposal 15000 What is the accumulated depreciation on the date of the disposal? What is the book value of the equipment on the date of the disposal? What is the amount of the gain or loss on the disposal? If a loss, start your answer with a - sign.
Use the information below to answer the questions that follow. Enter your answers using digits only- no dollar signs, commas, or decimal points. The business's year- end is December 31. • Cost of equipment 36000 • Useful life in years 4 • Residual value 0 • Date purchased April 1, 2021 • Date of disposal September 30, 2023 • Cash received on disposal 15000 What is the accumulated depreciation on the date of the disposal? What is the book value of the equipment on the date of the disposal? What is the amount of the gain or loss on the disposal? If a loss, start your answer with a - sign.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Use the information below to answer the questions that follow. Enter your answers
using digits only - no dollar signs, commas, or decimal points. The business's year-
end is December 31.
• Cost of equipment = 36000
• Useful life in years = 4
• Residual value 0
• Date purchased April 1, 2021
• Date of disposal September 30, 2023
• Cash received on disposal 15000
What is the accumulated depreciation on the date of the disposal?
What is the book value of the equipment on the date of the disposal?
What is the amount of the gain or loss on the disposal? If a loss, start your answer
with a - sign.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3b8e68f-3309-475d-aa8e-1dccd17db797%2F6a460c06-2742-4c35-b731-afd2a7e513c8%2Fs616de_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the information below to answer the questions that follow. Enter your answers
using digits only - no dollar signs, commas, or decimal points. The business's year-
end is December 31.
• Cost of equipment = 36000
• Useful life in years = 4
• Residual value 0
• Date purchased April 1, 2021
• Date of disposal September 30, 2023
• Cash received on disposal 15000
What is the accumulated depreciation on the date of the disposal?
What is the book value of the equipment on the date of the disposal?
What is the amount of the gain or loss on the disposal? If a loss, start your answer
with a - sign.
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