Accounting For Governmental & Nonprofit Entities
Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
Question
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Chapter 5, Problem 17.11EP
To determine

Identify the amount of general capital assets held by the town.

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An asset owned by Crescent Manufacturing has a book value of $36,000 on June 30, Year 5. The asset has been depreciated at an annual rate of $8,000 using the straight-line method. Assuming the asset is sold on June 30, Year 5 for $39,500, how should the company record the transaction? a. Neither a gain nor a loss is recognized on this type of transaction. b. A gain on sale of $3,500. c. A gain on sale of $5,000. d. A loss on sale of $3,500. e. A loss on sale of $5,000.
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