5)Calculate the gain or loss on dispositions of the following fixed assets:$520,000$80,0008 yearsPurchase PriceSalvage valueEstimated useful lifeDepreciation methodAsset sold after owning forstraight line5.5 years$125,000Assets sold forGain/Loss???

Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life of the assets = ($520,000- $80,000) / 8 years = $55,000Net Book value of assets = cost - accumulated depreciation for 5.5 years = $520,000 - $55,000 x 5.5 years = $217,500 Gain (loss) on sale = Sales value - Net Book value of assets = $125,000 - $217,500 = $(92,500)

Business

Accounting

Calculate the gain or loss on dispositions of the following fixed assets: $520,000 $80,000 Purchase Price Salvage value Estimated useful life 8 years Depreciation method Asset sold after owning for straight line 5.5 years $125,000 Assets sold for Gain/Loss ???

Calculate the gain or loss on dispositions of the following fixed assets: $520,000 $80,000 Purchase Price Salvage value Estimated useful life 8 years Depreciation method Asset sold after owning for straight line 5.5 years $125,000 Assets sold for Gain/Loss ???

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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