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On July 1, 2022, Cullumber Company sells equipment for $118000. The equipment originally cost $330000, had an estimated 5-yea

A plant asset with a cost of $310000 and accumulated depreciation of $292000 is sold for $41500. What is the amount of the ga



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Answer #1
no Account titles & Explanations Debit Credit
1) cash 118,000
Accumulated dep (330,000-50,000)/5*6/12+196,000 224000
Gain on disposal             12,000
Equipment           330,000
Answer $12,000 gain
no Account titles & Explanations Debit Credit
2) cash 41,500
Accumulated dep 292,000
Gain on disposal 23,500
Equipment 310,000
Answer $23,500 gain
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