On July 15, 2024, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $770,000 and $335,000, respectively. On the date of the sale, the book value of the patent was $130,000, and the book value of the equipment was $412,000 (cost of $572,000 less accumulated depreciation of $160,000). Prepare the journal entries to record the sales of the patent and equipment. Record the sale of the patent for $770,000. On the date of the sale, the book value of the patent was $130,000. Record the sale of the equipment for $335,000. On the date of the sale, the book value of the equipment was $412,000 (cost of $572,000 less accumulated depreciation of $160,000).
On July 15, 2024, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $770,000 and $335,000, respectively. On the date of the sale, the book value of the patent was $130,000, and the book value of the equipment was $412,000 (cost of $572,000 less accumulated depreciation of $160,000). Prepare the journal entries to record the sales of the patent and equipment. Record the sale of the patent for $770,000. On the date of the sale, the book value of the patent was $130,000. Record the sale of the equipment for $335,000. On the date of the sale, the book value of the equipment was $412,000 (cost of $572,000 less accumulated depreciation of $160,000).
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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On July 15, 2024, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $770,000 and $335,000, respectively. On the date of the sale, the book value of the patent was $130,000, and the book value of the equipment was $412,000 (cost of $572,000 less
Prepare the
Record the sale of the patent for $770,000. On the date of the sale, the book value of the patent was $130,000.
Record the sale of the equipment for $335,000. On the date of the sale, the book value of the equipment was $412,000 (cost of $572,000 less accumulated depreciation of $160,000).
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