ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years ago. The carrying value of each equipment is P5,000. The selling price of each equipment is P3,000. Upon executing the sale, ABC received P5,000 down payment and a 10% 1 year promissory note for the balance. Compute the amount of loss ABC has suffered from the sale of the equipment.

Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…

A: Answer to question a. Purchase cost of warehouse $65,000 Less: Depreciation claimed till year 0…

Q: Justice Inc. sold its old equipment with original cost of 2,000,000 and accumulated depreciation of…

A: When the asset is sold at a price higher than its book value, it is said to be sold at a profit.

Q: At the end of December 200A, how much is the total amount of income that should be shown in ABC’s…

A: Income is the money which has been earned by the company during the year or the period and the total…

Q: January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at…

A: Initial amount of the note receivable = Down payment (If any)+Present value of face amount + Present…

Q: Willis Company trades in a printing press for a newer model. The cost of the old printing press was…

A: This is a case of asset exchange, and exchanges having commercial substance are recorded at fair…

Q: Velasquez Company sold an item of equipment costing P3,800,000 to Vince for P5,000,000. 20%…

A: Answer: (850,000). Explanation:  According to question, Cost of equipment= P3,800,000. Sale price of…

Q: Keating Co. is considering disposing of equipment with a cost of $74,000 and accumulated…

A: Preparation of income statement helps the business entity in determining how much amount of gross…

Q: Keating Co. is considering disposing of equipment that cost $50,000 and has $40,000 of accumulated…

A: Sell or lease is the decision making analysis which helps the entity to make a decision relating to…

Q: Jamela Company acquired a welding machine with an invoice price of P5,000,000 subject to a cash…

A: As per IAS 16 , Property plant and equipment,  Cost of property plant and equipment consists of…

Q: Mazaya Company has decided to sell one of its old machines on June 30, 2011. The machine was…

A: Gains: Gains are the profits earned from non-operating activities of a business like sale of land,…

Q: Burrell Company purchased a machine for $10,000 on January 2, 2019. The machine has an estimated…

A: DEPRECIATION UNDER DOUBLE DECLINING METHOD Rate =100%5 =20% Double declining rate = 20×2=40%

Q: CEE Corporation purchased a machine on January 1, 2016 by instalment, initially paying ₱1,000,000,…

A: In case of purchase of fixed asset under instalment method, then amount paid by way of number of…

Q: Gupta Co purchased a building on 30 June 19X9 for $250,000. At the date of purchase, Gupta estimated…

A: Depreciation refers to the cost of machinery that is expenses during the life of the asset due to…

Q: During the current year, Erving Company exchange an old packing machine     which cost 1 200 00 and…

A: Fixed assets are those assets which a company held for a longer period of time, i.e., for period…

Q: On 1 July 2016, Liala Itd sold an item of plant to Jordan Ltd Ltd for $150,000 when its carrying…

A: Intera-group transfer transaction occurs when there is a sale or purchase of assets or goods between…

Q: Francis Company purchased a machine for $24, 000; the seller is holding the note. Francis Company…

A: Property, plant, and equipment refers to those assets which are long-term in nature and are used by…

Q: Keating Co. is considering disposing of equipment that cost $56,000 and has $39,200 of accumulated…

A: Differential analysis :— This analysis shows the comparison between two alternatives.  Net benefit…

Q: The initial amount of the note receivable is (Round off the resulting present value of the note to…

A: The initial amount of notes receivable is calculated as present value of the installment payment.…

Q: Duncan Company owns a machine with a cost of $75,000 and accumulated depreciation of $15,000 that…

A:

Q: Genetic Insights Co. purchases an asset for $10,473. This asset qualifies as a seven-year recovery…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: Reason Inc. sold its old equipment with original cost of P2,000,000 and accumulated depreciation of…

A: Solution Working note  Carrying amount of equipment = original cost - accumulated depreciation. =…

Q: On January 1, 20X3, O’Neil Company buys equipment for $70,000 with a ten-year life and a $10,000…

A: DEPRECIATION ACCOUNTING   Depreciation means Gradual Decrease in the Value of an Assets due to…

Q: Francis Company purchased a machine for $24, 000; the seller is holding the note. Francis Company…

A: The adjusted basis of machinery refers to the original cost of acquiring the machinery, adjusted for…

Q: Nozark Corp. is now in the final year of a project.  The equipment originally cost $9,179, and the…

A: Book value =$736 Sale price of equipment =$2448 Tax rate =30%

Q: Bullwinkle Company owns a equipment with a cost of $367,200 and accumulated depreciation of $54,100…

A: sales commission is 5% on sale value: $227,400 x 5% =$13,870

Q: Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of…

A: Corporate accounting:   Branch of accounting that deals with the preparation of the financial…

Q: Prepare a differential analysis on February 21 as to whether Duncan Company should lease…

A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…

Q: Md inc. acquires a machine for 77,000. It spends an additional $10,000 in installing the machine and…

A: Solution:

Q: On January 1, 20X1, Merchant Co. sold a tractor to Swanson Inc. and simultaneously leased it back…

A: A sale-leaseback transaction involves the seller selling an asset that they previously held to…

Q: 0. The appropriate pre tax discount rate is 10%. Requirement: Provide the journal entry.

A: Cost of machinery includes Commonly included in fixed costs are equipment depreciation, interest…