At December 31, 20X0, the following existed in the records of Loren Company: Fixed Assets - $8,600,000; Accumulated Depreciation - $3,970,000. During the year ended September 30,20X1, fixed assets with a written down value of $370,000 was sold for $490,000. The plant had originally cost $800,000. Fixed assets purchased during the year cost $1,800,000. It is the company's policy to charge a full year's depreciation in the year of acquisition of an asset and none in the year of sale, using a rate of 10% on the straight line basis. What net amount (book value) should appear in the statement of financial position as of September 30, 20X1 for fixed assets?

At December 31, 20X0, the following existed in the records of Loren Company: Fixed Assets - $8,600,000; Accumulated Depreciation - $3,970,000. During the year ended September 30,20X1, fixed assets with a written down value of $370,000 was sold for $490,000. The plant had originally cost $800,000. Fixed assets purchased during the year cost $1,800,000. It is the company's policy to charge a full year's depreciation in the year of acquisition of an asset and none in the year of sale, using a rate of 10% on the straight line basis. What net amount (book value) should appear in the statement of financial position as of September 30, 20X1 for fixed assets?

Name: At December 31, 20X0, the following existed in the records of Loren Co
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Description: At December 31, 20X0, the following existed in the records of Loren Company: Fixed Assets - $8,600,000; Accumulated Depreciation - $3,970,000.During the year ended September 30,20X1, fixed assets with a written down value of $370,000 was sold for $49

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...

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