Company X sold Equipment with a $150,000 cost and $40,000 of Accumulated Depreciation for $125,000. At the time of the sales, the company’s PPE account had a beginning and ending debit balances of $245,000 and $300,000 respectively. The company’s accumulated depreciation accounting and beginning and ending credit balances of $100,000 and $98,000 respectively.
Answer-a:
Sale price of equipment sold | $ 125,000 | |
Less: Cost of machinery | $ 150,000 | |
(-) Accumulated depreciation | (40,000) | 110,000 |
Gain on sale of equipment | 15,000 |
Answer-b:
New PPE purchased during the year = $205,000
Answer-c:
Depreciation expenses for the year = $38,000
Answer-d:
Cash earned from selling PPE during the year = $125,000
Explanation for b, c & d:
Company X sold Equipment with a $150,000 cost and $40,000 of Accumulated Depreciation for $125,000. At...
Blythe Company has equipment with an original cost of $150,000 and accumulated depreciation of $40,000. What is the current fair value of the equipment? A) $150,000 B) $110,000 C) $40,000 D) unable to determine from the information given
18. If a company had equipment with an original cost of $125,000 and had accumulated depreciation to date of $37,500, what would be the adjustment for this year if the depreciation rate is 15% of the beginning of the year's book value? a) $12,500 b) $13,125 c) $10,520 d) This test is getting on my nerves.
During 20x1 Company X sold $4,000 of inventory on credit. The company’s beginning and ending accounts receivable balances were $25,000 and $28,000, respectively. How much cash did Company X collect on account? If the ending accounts receivable had been $21,500…how much cash would company X have collected.
Martinez owns an asset that cost $87,000 with accumulated depreciation of $40,000. The company sells the equipment for cash of $42,000. At the time of sale, the company should record: A gain on sale of $5,000. A gain on sale of $2,000. A loss on sale of $2,000. A loss on sale of $45,000. A loss on sale of $5,000.
Un Company sold office equipment with a cost of $39270 and accumulated depreciation of $35,912 for $5,320. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (ncrease, decrease, no effect)...
Un Company sold office equipment with a cost of $41,280 and accumulated depreciation of $37,530 for $5,390. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect)...
A company sold equipment that originally cost $140,000 for $112,000 cash. The accumulated depreciation on the equipment was $28,000. The company should recognize a: Multiple Choice 0 $0 gain or loss. $14,000 gain. O $14,000 loss. o $28,000 loss. o o $112,000 gain.
Un Company sold office equipment with a cost of $39,580 and accumulated depreciation of $35,255 for $6,440. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect)...
Un Company sold office equipment with a cost of $36.280 and accumulated depreciation of $32,438 for $5.460. Required a. What is the book value of the asset at the time of sale? Book value b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? Amount Effect Net income d. How would the sale affect the amount of total assets shown on the...
Eastman Kodak reported that the cost of its PPE on December 31, 2010 was $6,805 million. On January 1, 2010, it had been $7,327 million. Also, the balance of accumulated depreciation on December 31, 2010 was $5,254 million. On January 1, 2010, it had been $5,516 million. Depreciation expense for the fiscal year 2010 was $420 million. During 2010, the company bought new equipment with acquisition cost of $254 million worth. The company also sold PPE and reported a $14...