Question

On the balance sheet, it is not necessary to report both the cost and the accumulated depreciation of an asset.

True or False

TrueFalse

SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building was appraised at $65,000; the land at $40,000; and the parking lot at $10,000. To the nearest dollar, the value of the land to be recorded in the books should be

Multiple Choice

• $40,000

• $56,522

• $48,696

• $34,783

• $36,364

• Depreciation is usually recorded

  Multiple Choice

• From the actual date of purchase

• From the beginning of the accounting year in which an asset is purchased

• From the first of the month nearest the actual purchase date

• By any of the above methods

• From the end of the month nearest the actual purchase date

• TB 09-52 Equipment costing $14,000 with accumulated d...

  TB 09-52 Equipment costing $14,000 with accumulated d...

  Equipment costing $14,000 with accumulated depreciation of $10,000 was sold for $3,000. The company should recognize a $1,000 loss on disposal of the equipment.

  True or False

  TrueFalse

• Sports Med sold an X-ray machine that originally cost $100,000 for $60,000. The accumulated depreciation on the machine to the date of sale was $40,000. On this sale, Sports Med should recognize:

  Multiple Choice

• $0 gain or loss

• $20,000 gain

• $60,000 gain

• $25,000 gain

• $40,000 loss

Answer 1

• On the balance sheet, it is not necessary to report both the cost and the accumulated depreciation of an asset.

False

• the value of the land to be recorded in the books should be

$34,783

Computation:-

(40000 /115000) x 100,000 = $34,783

• Depreciation is usually recorded

By any of the above methods

• The company should recognize a $1,000 loss on disposal of the equipment.

True

• Sports Med should recognize:

$0 gain or loss

Computation:-

Net value of Machine = $100,000 - $40,000 (accumulated depreciation) = $60,000

Gain or Loss = $60,000 - $60,000 = 0

Please give a Thumbs up ?. Thanks!!