Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations: Disposal with no gain no loss : When the asset is disposed with no consideration received. Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation ). Disposal with loss: When the asset is disposed for less than its book value. Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below: Depreciation = ( Cost of the asset − Residual value ) Estimated useful life of the asset the annual amount of depreciation for the years 2013, 2014 and 2015 using the straight-line method of depreciation.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 9.18EX

a.

To determine

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below:

Depreciation = (Cost of the asset−Residual value)Estimated useful life of the asset

the annual amount of depreciation for the years 2013, 2014 and 2015 using the straight-line method of depreciation.

b.

To determine

the book value of the equipment on January 1of 2016.

c.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

d.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Can you demonstrate the proper approach for solving this financial accounting question with valid techniques?

Please provide the accurate answer to this general accounting problem using valid techniques.

Provide answer

Answer 2

Question

Chapter 9, Problem 9.18EX

a.

To determine

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below:

Depreciation = (Cost of the asset−Residual value)Estimated useful life of the asset

the annual amount of depreciation for the years 2013, 2014 and 2015 using the straight-line method of depreciation.

b.

To determine

the book value of the equipment on January 1of 2016.

c.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

d.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 9.18EX

a.

To determine

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below:

Depreciation = (Cost of the asset−Residual value)Estimated useful life of the asset

the annual amount of depreciation for the years 2013, 2014 and 2015 using the straight-line method of depreciation.

b.

To determine

the book value of the equipment on January 1of 2016.

c.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

d.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 9.18EX

a.

To determine

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below:

Depreciation = (Cost of the asset−Residual value)Estimated useful life of the asset

the annual amount of depreciation for the years 2013, 2014 and 2015 using the straight-line method of depreciation.

b.

To determine

the book value of the equipment on January 1of 2016.

c.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

d.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 9.18EX

a.

To determine

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below:

Depreciation = (Cost of the asset−Residual value)Estimated useful life of the asset

the annual amount of depreciation for the years 2013, 2014 and 2015 using the straight-line method of depreciation.

b.

To determine

the book value of the equipment on January 1of 2016.

c.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

d.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Answer 6

Chapter 9, Problem 9.18EX

a.

To determine

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below:

Depreciation = (Cost of the asset−Residual value)Estimated useful life of the asset

the annual amount of depreciation for the years 2013, 2014 and 2015 using the straight-line method of depreciation.

Answer 7

Chapter 9, Problem 9.18EX

a.

To determine

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the residual value is shown as below:

Depreciation = (Cost of the asset−Residual value)Estimated useful life of the asset

the annual amount of depreciation for the years 2013, 2014 and 2015 using the straight-line method of depreciation.

Answer 8

b.

To determine

the book value of the equipment on January 1of 2016.

Answer 9

b.

To determine

the book value of the equipment on January 1of 2016.

Answer 10

c.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Answer 11

c.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Answer 12

d.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Answer 13

d.

To determine

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 9 - ONeil Office Supplies has a fleet of automobiles...Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Distinguish between the accounting for capital...Ch. 9 - Immediately after a used truck is acquired, a new...Ch. 9 - Keyser Company purchased a machine that has a...Ch. 9 - Is it necessary for a business to use the same...Ch. 9 - a. Under what conditions is the use of an...Ch. 9 - For some of the fixed assets of a business, the...Ch. 9 - A. Over what period of time should the cost of a...

Solution Summary: The author explains the straight-line method of depreciation, wherein the same amount is allocated every year over the estimated useful life of an asset.

Concept explainers

Videos

the book value of the equipment on January 1of 2016.

To record: the journal entry for the sale of the equipment on January 3 of 2016.

To record: the journal entry for the sale of the equipment on January 3 of 2016.

Want to see the full answer?

Chapter 9 Solutions