A company discarded a computer system originally purchased for $8,750. The accumulated depreciation was $6,450. The company should recognize a (an): Multiple Choice $0 gain or los. $2,300 loss. $2,300 gain. $8,750 gain. $6,450 loss.
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- A copy machine cost $39,000 when new and has accumulated depreciation of $25,000. Suppose Print Center sold the machine for $14,000. What is the result of this disposal transaction? OA. Gain of $14,000 OB. Loss of $25,000 OC. Loss of $14,000 D. No gain or lossA company discarded a computer system originally purchased for $8,750. The accumulated depreciation was $6,450. The company should recognize a (an):A company sold a machine that originally cost $250,000 for $120,000 when accumulated depreciation on the machine was $100,000. The gain or loss recorded on the sale of this machine is a. $0 gain or loss. d. $30,000 gain. b. $120,000 gain. e. $150,000 loss. c. $30,000 loss.
- JT Enterprises decides to scrap its old widget-making machine, which has a book value of $8,600. The salvage company pays JT $8,700 for the machine. How should JT record this disposition? a.) as a $100 loss b.) as a $100 gain c.) as an $8,600 loss d.) as an $8,700 gainJames Company sells a plant asset that originally cost $180,000 for $60,000 on December 31, 20x1. The accumulated depreciation account had a balance of $72,000. What should the company recognize? a. $ 120,000 loss on disposal. b. $ 48,000 loss on disposal. c. $ 48,000 gain on disposal. d. $ 30,000 loss on disposal.Effect of depreciation on net income Einstein Construction Co. specializes in building replicas of historic houses. Bree Andrus. president of Einstein Construction, is considering the purchase of various items of equipment on July 1. 20Y2. for $300,000. The equipment would have a useful life of five years and no residual value. In the past, all equipment has been leased. For tax purposes, Bee is considenng depreciating the equipment by the straight-line method. She discussed the matter with her CPA and learned that although the straight-line method could be elected, it was to her advantage to use the Modified Accelerated Cost Recovery System (MACRS) for tax purposes. She asked for your advice as to which method to use for tax purposes. What factors would you present for Bree’s consideration in the selection of a depreciation method?
- Becker Office Service purchased a new computer system on January 1, 2018, for $30,800. It is expected to have a five-year useful life and a $3,600 salvage value. Becker Office Service expects to use the computer system more extensively in the early years of its life. Required a. Calculate the depreciation expense for each of the five years, assuming the use of straight-line depreciation. Salvage Value Useful Annual Year Cost Life Depreciation 1 2 3 4 b. Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation. (Enter all amounts as positive values. Do not round intermediate calculations. Round "SL rate" answers to 2 decimal places. Round your answers to the nearest dollar amount.) Accumulated Depreciation Annual Beginning of Period (2 x SL Rate) Year Cost Depreciation 1 2 3 4Bravo Company's furnace, which has a current book value of $40,000 (original cost less than accumulated depreciation), has been destroyed. If the insurance company pays Bravo $45,000, which of the following transactions is Bravo supposed to record? Select the single best answer: A debit Cash $45,000 credit Equipment/Furnace $45,000 B. debit Cash $40,000, debit Equipment/Furnace $40,000 C credit Gain on Disposition of Equipment/Furnace $45,000, debit Cash $45,000 D. debit Equipment/Furnace $5,000 credit Equipment/Furnace $40.000, debit Cash $45,000 E credit Gain on Disposition of Equipment/Furnace $5,000 credit Equipment/Furnace $40,000; debit Cash $45.0006-SINA Company furnace, which has a current book value of $45000 (Original Cost less accumulated depreciation), has been destroyed. If the insurance company pays Bravo$50000 which of the following transactions should be recorded? A-Debit Cash $50000; Credit Equipment/ Furnace $50000. B- Debit Cash $45000; debit Equipment/ Furnace $45000. C-Credit Gain on Disposition of Equipment/ Furnace $50000; Debit cash $50000. D-debit Equipment/ Furnace $5000; Credit Equipment/ Furnace $45000; debit Cash $50000. E-Credit Gain on Disposition of Equipment/ Furnace $5000; Credit Equipment/ Furnace $45000; Debit Cash $50000.
- ion(1) to course 'Taxation(1)' 14 The Britannia Company newly installed the software. The WDV at OMR 100,000, unfortunately software corrupted. The technician backup the corrupted software, service expenditure OMR 1000. Calculate the depreciation value, put of Select one: a. OMR 32,670 b. OMR 33,330 Oc. OMR 28.450 Od OMR 33,000 Next page nage1. Disposal of an asset. From pages 7-7 and 7-8 of the VLN, the company sold the mower after using it for a year and a half for $6,000. In recording the sale, they would: Group of answer choices A. Debit a loss for $2,000 B. Debit cash for $2,000 C. Credit a gain for $1,000 D. Credit accumulated depreciation for $3,000 2. From page 7-8 of the VLN, what is the net profit margin in the practice problem on the bottom of the page? Do not include the % sign, carry to one decimal place. ___._%Norse Company acquired a new machine on January 15 20X1. It sold the machine October 15 20X2 incurring a $10,000 loss. What is the nature of the loss? (a.) Capital Loss (b.) Ordinary Loss (c.) Inventory Loss (e.) Section 1231 Loss