Question

Current Attempt in Progress i ne depreciation has been recorded based on a 553400 age value and years . The machinery was sold on May 1, 2018 in of $17400 Bonita industries purchased machinery for 1000 n ary 1 2014. S How much chid Bonita receive from the sale of the machinery $182330 $129480 $1400

Answer 1

1. $182880

2. $43605

Explanation

1 Cash Amount Received is $182880 Explanation : Depreciation for machinery till 1 may 2018 2014| 1681201 2015 | 168120 2016 168120 2017| 168120 Till 1may 2018 56040168120/3 Total 728520 Depreciation as per SLM Method = (Cost-slavage value)/useful life Depreciation as per SLM Method ($894000-$53400)/5 Depreciation for each year till year 2017 - $168120 Value as on the date of sale = $894000 - $728520 Value = 165480 Cash Received = Value + Gain on machinery $165480 +$ 17400 Cash Received 182880 2 Cost of the Equipment = Equipment Purchased + Sales Tax + Freight Charges +Installation cost Cost of the Equipment $40000 + $2400 + $540 + $665 Cost of the Equipment 43605