FedEx Corporation | ||||
Calculation of Gain/loss on disposal | ||||
(a) | (b) | (C) | ||
Cost | 28000 | 28000 | 28000 | |
Less: Accumulated Depreciation | -12000 | -10000 | -15000 | |
Book Value | 16000 | 18000 | 13000 | |
Less: Sales Price | 16000 | 16000 | 16000 | |
Gain/Loss on disposal | 0 | -2000 | 3000 | |
Bok Value=Cost-Accumulated Depreciation | ||||
Gain/Loss on disposal-Sales Value of disposal-Book Value | ||||
Sale Price> Book Value=Gain,Sales Price< Book Value=Loss | ||||
Assets= | Liabilities+ | Stockholder's Equity | Note | |
a) | ||||
Cash | $ 16,000.00 | Cash Received for sale of Truck | ||
Truck | $ -28,000.00 | Truck disposed off | ||
Accumulated Depreciation | $ -12,000.00 | When Assets disposed off, corresponding Accumulated depreciation reduced | ||
Loss /Gain on disposal | ||||
$ -12,000.00 | $ -12,000.00 | |||
Assets= | Liabilities+ | Stockholder's Equity | Note | |
b) | ||||
Cash | $ 16,000.00 | Cash Received for sale of Truck | ||
Truck | $ -28,000.00 | Truck disposed off | ||
Accumulated Depreciation | $ -10,000.00 | When Assets disposed off, corresponding Accumulated depreciation reduced | ||
Loss /Gain on disposal | $ -2,000.00 | Stockholder's Equity reduced due to loss on disposal. | ||
$ -12,000.00 | $ -10,000.00 | $ -2,000.00 | ||
Assets= | Liabilities+ | Stockholder's Equity | Note | |
c) | ||||
Cash | $ 16,000.00 | Cash Received for sale of Truck | ||
Truck | $ -28,000.00 | Truck disposed off | ||
Accumulated Depreciation | $ -15,000.00 | When Assets disposed off, corresponding Accumulated depreciation reduced | ||
Loss /Gain on disposal | $ 3,000.00 | Stockholder's Equity will be increased due to gain on disposal. | ||
$ -12,000.00 | $ -15,000.00 | $ 3,000.00 |
Required information The following information applies to the questions displayed below. FedEx Corporation is the world's...
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Required information [The following information applies to the questions displayed below.] Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $26,000. Movelt had originally purchased the truck for $43,000 and had recorded depreciation for three years. 2. Using the following structure, indicate the effects (accounts, amounts, and + for increase and - for...
Required Information [The following Information applies to the questions displayed below.] Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $14,000. Movelt had originally purchased the truck for $23,000 and had recorded depreciation for three years. 2. Using the following structure, indicate the effects (accounts, amounts, and + for increase and - for...
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Required Information The following information applies to the questions displayed below.] Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $14,000. Movelt had originally purchased the truck for $23,000 and had recorded depreciation for three years. Required: 1. Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation was (a)...
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