Use the information below to answer the questions that follow. The business's year-end is December 31. Cost of equipment = 120000 Useful life in years = 10 Residual value = 0 Date purchased = February 1, 2021 Date of disposal = October 31, 2023 Cash received on disposal = 85000 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?
Use the information below to answer the questions that follow. The business's year-end is December 31. Cost of equipment = 120000 Useful life in years = 10 Residual value = 0 Date purchased = February 1, 2021 Date of disposal = October 31, 2023 Cash received on disposal = 85000 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Use the information below to answer the questions that follow. The business's year-end is December 31.
- Cost of equipment = 120000
- Useful life in years = 10
- Residual value = 0
- Date purchased = February 1, 2021
- Date of disposal = October 31, 2023
- Cash received on disposal = 85000
What is the
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?
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Step 1: Introduce to depreciation expense
VIEWStep 2: Working for annual depreciation expense
VIEWStep 3: Working for accumulated depreciation on date of disposal
VIEWStep 4: Working for book value of equipment at the time of disposal
VIEWStep 5: Working for gain or loss on disposal
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