On January 2, 2019, Twilight Hospital purchased a $106,000
special radiology scanner from Pharoah Inc. The scanner had a
useful life of 4 years and was estimated to have no disposal value
at the end of its useful life. The straight-line method of
depreciation is used on this scanner. Annual operating costs with
this scanner are $106,000.
Approximately one year later, the hospital is approached by Dyno
Technology salesperson, Jacob Cullen, who indicated that purchasing
the scanner in 2019 from Pharoah Inc. was a mistake. He points out
that Dyno has a scanner that will save Twilight Hospital $26,000 a
year in operating expenses over its 3-year useful life. Jacob notes
that the new scanner will cost $110,000 and has the same
capabilities as the scanner purchased last year. The hospital
agrees that both scanners are of equal quality. The new scanner
will have no disposal value. Jacob agrees to buy the old scanner
from Twilight Hospital for $54,500.
If Twilight Hospital sells its old scanner on January 2, 2020,
compute the gain or loss on the sale.
$_______________
Answer: Loss $25,000
Explanation:
Gain/Loss on sale=Sales price of asset-Book value of Old asset
Sales price=54,500
Book Value of old asset= Original Cost-accumulated depreciation
accumulated depreciation(straight line method)=(original cost-salvage)*used years/useful life=(106,000-0)1/4=26,500
Book value=106,000-26,500=79,500
Gain/loss=54500-79500=-25,000 (Loss)
If helpful, Thumbs UP please:)
On January 2, 2019, Twilight Hospital purchased a $106,000 special radiology scanner from Pharoah Inc. The...
On January 2, 2016, Twilight Hospital purchased a $98,400 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are $106,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2016 from...
Exercise 20-13 (Part Level Submission) On January 2, 2016, Twilight Hospital purchased a $92,000 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are $104,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing...
Exercise 20-13 (Part Level Submission) On January 2, 2016, Twilight Hospital purchased a $103,200 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are $105,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing...
Exercise 20-13 (Part Level Submission) On January 2, 2016, Twilight Hospital purchased a $103,200 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner, Annual operating costs with this scanner are $105,000 Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing...
CALCULATOR PRINTER VERSION BACK NEXT Exercise 20-13 (Part Level Submission) On January 2, 2016, Twilight Hospital purchased a $99,200 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner, Annual operating costs with this scanner are $104,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob...
On January 2, 2016, Blue Hospital purchased
a $96,400 special radiology scanner from Bella Inc. The scanner had
a useful life of 4 years and was estimated to have no disposal
value at the end of its useful life. The straight-line method of
depreciation is used on this scanner. Annual operating costs with
this scanner are $106,000. Approximately one year later, the
hospital is approached by Dyno Technology salesperson, Jacob
Cullen, who indicated that purchasing the scanner in 2016 from...
Exercise 7.25 a-b On January 2, 2019, Riverside Hospital purchased a $101,000 special radiology scanner from Fatal Inc. The scanner has a useful le of five years and will have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner Annual operating costs with this scanner are $104.000 Approximately one year later, the hospital is approached by Alliant Technology salesperson in Soon, who indicates that purchasing the scanner in 2019...
Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2016 from Bella Inc. was a mistake. He points out that Dyno hasa scanner that will save Twilight Hospital $25,000 a year in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $110,000 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal...
On January 2, 2017, Pharoah Co. bought a trademark from Royce,
Inc. for $1920000. An independent research company estimated that
the remaining useful life of the trademark was 10 years. Its
unamortized cost on Royce’s books was $1420000. In Pharoah’s 2017
income statement, what amount should be reported as amortization
expense?
$71000.
$192000.
$142000.
$96000.
On January 1, 2019, Betty DeRose, Inc. purchased a piece of machinery for $320,000. The machine had an estimated useful life of 8 years and a salvage value of $5,000. Assume Betty DeRose depreciates its assets using the double declining balance method of depreciation. Calculate the amount of accumulated depreciation related to the machine that would appear in Betty's December 31, 2022 balance sheet.