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Question 5 --/1 View Policies Current Attempt in Progress Crane Company sells office equipment on July 31, 2017, for $20,440Question 5 --11 View Policies Current Attempt in Progress Crane Company sells office equipment on July 31, 2017, for $20,440

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Answer #1
Assets = Liabilities + Stockholders' Equity
= + Retained earnings
Cash + Equipment - Accumulated depreciation - equipment = + Common stock + Revenue - Expenses - Dividend
82,640 38,770 =
4,250 = 4,250
20,440 -82,640 43,020 = 19,180

Accumulated depreciation till the date of sale = 38,770 + 4,250

= $43,020

Book value of equipment at the date of sale = Cost price - Accumulated depreciation

= 82,640 - 43,020

= $39,620

Loss on sale of equipment = Book value of equipment at the date of sale - Sale price of equipment

= 39,640 - 20,440

= $19,180

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