A. Loss on sale equals $27,000 and Cash inflow equals $31,000.
Loss on sale = $58,000 - $31,000 = $27,000
Cash inflow = $31,000(Cash received from sale)
Evergreen, Inc. sold an asset with a book value of $58,000 for $31,000 cash. Which of...
Equipment with a book value of $ 8000 is sold for $ 3000 cash . the statement of cash flows will report a: A. $5000 cash outflow in the financing activities section B. $3000 cash inflow in the operating activities section C. $5000 cash outflow in the operating activities section D. $3000 cash inflow in the investing activities section.
The Sonesta Company sold equipment for cash. The income statement shows a loss on sale of $5,000. The net book value of the asset prior to sale was $24,000. Which of the following statements describes the cash effect of the transaction? A.Negative cash flow of $19,000 in operating activities B.Negative cash flow of $14,000 in financing activities C.Positive cash flow of $29,000 in investing activities D.Positive cash flow of $19000 in investing activities
Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Palepu Company owns and operates a delivery van that originally cost $27,200. Straight-line depreciation on the van has been recorded for three years, with a $2,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the third year, at which time Palepu disposes of this van. a. Compute the net book value of the van on the...
Which of the statements below is FALSE? A) The current book value of an asset serves as the basis for determining the gain or loss at disposal. B) Book value is the original cost of the asset plus the accumulated depreciation. C) A gain on disposal is recognized when the selling price of the asset is greater than the book value. D) A loss on disposal is recognized when the selling price of the asset is less than the book...
Un Company sold office equipment with a cost of $41,280 and accumulated depreciation of $37,530 for $5,390. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect)...
The double-declining - balance method of depreciation causes: O A. the same amount of depreciation in early years of an asset's use as compared to other depreciation methods O B. more depreciation in early years of an asset's use as compared to other depreciation methods O c. less depreciation in early years of an asset's use as compared to other depreciation methods OD. is not an acceptable depreciation method according to GAAP A loss is recorded on the sale of...
An asset's book value is $19,200 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,200 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,200, the company should record: Multiple Choice 0 A loss on sale of $3,300. O Aloss on sale of $3,000. Neither a gain nor a loss is recognized on this type of transaction. Again on sale of $3,300. O A gain on sale...
Un Company sold office equipment with a cost of $36.280 and accumulated depreciation of $32,438 for $5.460. Required a. What is the book value of the asset at the time of sale? Book value b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? Amount Effect Net income d. How would the sale affect the amount of total assets shown on the...
Print item Calculator Show Me How Book Disposal of Foced Asset Equipment acquired on January 6 at a cost of $385,000, has an estimated useful Ife of 9 years and an estimated residual value of $50.200. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Depreciation Expense Year Yвar 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 47 Feedba Check...
Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been recorded for four years using the straight- line method, with a $5,000 estimated salvage value at the end of an expected ten-year life. After recording depreciation at the end of four years, Raine sells the machine Determine the gain or loss in each scenario if the machine sold for: Scenario Gain, Loss, or Neither Amount a $37.000 cash b. $36,800 cash C. $28,000 cash