Question

Q3/ Please answer only Part E I have answers for all parts I need only answer for part E

On December 31, 2018, the company sold some equipment for a loss of $2,820. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $55,960 and $15,256, respectively. Based on this information, what were the proceeds received when this equipment was sold?

Cash proceeds from sale

$

On January 1, 2016, Cullumber Corporation acquired equipment costing $77,440. It was estimated at that time that the equipment would have a useful life of eight years and no residual value. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31.

A/

Calculate the equipment’s accumulated depreciation and carrying amount at the beginning of 2018.

Equipment’s accumulated depreciation		$
Carrying amount		$

B/

What is the amount of the gain or loss that would arise when a quarter of the equipment was sold on January 1, 2018, for cash proceeds of $18,540?

LossGainfrom sale of equipment

$

C/

What is the depreciation expense for January 1, 2018, to October 31, 2018?

Depreciation expense

$

D/

On November 1, 2018, the company purchased additional equipment for $10,320 that also had a useful life of eight years and no residual value. What is the depreciation for the two months ending December 31, 2018?

Total depreciation for 2 months

$

E/

On December 31, 2018, the company sold some equipment for a loss of $2,820. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $55,960 and $15,256, respectively. Based on this information, what were the proceeds received when this equipment was sold?

Cash proceeds from sale

$

Answer 1

Solution computation af tha eauipments uting Noe Accomo lakd da heciation and any ing amount af a011 at thu begihnig Depseciation CStraight ine mothod) $1,440 $9.680 Tha eauiment accomulatd Delre ciation at the beginning of aol &9.680 xa 819 360 tha canying anount ad tha begihning o aou 44001 19.360 S8,080

The deke ciati on exlenses fon Januas,ao1P to Octo ber 21.20l) lanticu lans AMount C) 9,680 Dele ciatta Per less canying valua o Quntey 3,420 a eauiPment On Jan), 2019 Balance Dekeclation On old t,260 equi Pment fon 1a nonths Dehreciation etfen se fon Januony ,ao1? to 0ctober 21, &018 (9.260 x10) 12 wOMri ng NOe3 comfutation a Defre ciation u tuo month (cOenber and doxen ber AMOunt C Pantico kans Dereciation Pen yea fon Additina 1290 eauitment 10.320) Defre clation on old eauiPment for ,860 210 a inon ths X2 12 Delre ciation on Additional eauilnent fer & months120 12 pelreciation Lon November Ond docen ber C@46)

E Comfutation of Pocceds vecei ed when this eqwipment ual sold COMPutation af eauifment's g0os boor ualuo beforw salo a! ha lart at tho end of ao 1 AMaunt( anHcokons G8oss Book valwo of eauitment at 4u0 tha beginning af aolt Add: Purchak of Additional 10,320 eauipment Less Salu of eauil ment i4,530) 58.080) cauiPment 9ross Boor Valua beforo 31a40 sals al Pant at the endof aolp Comfutation af eauifments ACUmulated dulreciation befow salu o Payt at tho end Panticalans AMount ( Acco mulodkd clolreciation at |१,366 tho begtnning at Add: pelreciabion fot &o1 ( GOs0 + 1425 36,835

comfutation of oceo d Pantitu lar Amount Cs) Carying valuo of eauip ment 46, 400 beforo Salo lart at thu end of gole (13.auoE 26,825) Less cany ing aluo af eauifnent (40.40u) Qfter tho Sala o Yart at tha) erday ao1 55,960 ) Is256) canying valuo eaoilnent sold at tha end a ao8 less Lass on salo o eauifment (9,8ao) Proceerts veceived when eauitment R u sold