1-3: Lapeer Enterprises purchased equipment for $72,000 on January 1, 2019. Theequipment is expected to have a six-year life and a residual value of $6,000. Lapeer usedstraight-line depreciation to record depreciation expenses. The equipment was sold for$30,000 on December 31, 2022. Lapeer Enterprises would record a gain/(loss) from thesale of:$30,000$8,000$2,000($2,000)

Describe the concept that will be used to solve this question: As per straight line depreciation…

Answered: 1-3: Lapeer Enterprises purchased…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Spiral Company uses the sun-of-the years’ digits method to depreciate equipment purchased in January 2021 for P20,000. The estimated residual value of the equipment is P2,000 and the estimated useful life is 4 years. What should Spiral Company report as the asset’s carrying amount as of December 31, 2023? a. 1,800 b. 2,000 c. 4,500 d. 3,800
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Presented below is information related to equipment owned by Sunland Company at December 31, 2025. Cost Accumulated depreciation to date Expected future net cash flows Fair value (a) $10,170,000 Sunland intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,600. As of December 31, 2025, the equipment has a remaining useful life of 4 years. 1,130,000. 7,910,000 5,424,000 Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Dec. 31 Date Account Titles and Explanation Debit Credit

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