E9-7 Wang Co. has delivery equipment that cost $50,000 and has been depreciated $24,000. Instructions Record entries for the disposal under the following assumptions. (a) It was scrapped as having no value. (b) It was sold for $37,000. (c) It was sold for $20,000.
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- Equipment acquired at a cost of $126,000 has a book value of $42,000. The equipment had no market value and was discarded. The equipment is sold for $54,000. The equipment is sold for $24,000. Journalize the disposal of the equipment under the assumptions listed above.During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original. Cost $56,000 15,200 The machines were disposed of in the following ways: View transaction list N a. Machine A: Sold on January 2, for $34,500 cash. b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). No 1 Required: 1.82. Prepare the journal entries related to the disposal of Machine A and Machine B on January 2 of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2 3 4 Residual Value. $10,500 2,400 Date January 02 Estimated Life View Journal entry worksheet January 02 January 02 January 02 7 years 5 years. No Journal Entry Required Accumulated Depreciation (straight-line). $26,000 (4 years) 7,680 (3 years) General Journal Cash Accumulated Depreciation-Equipment Gain on…(Round to the nearest dollar.) Compute depreciation under different methods. (LO 3, 9), AP *P9-8B Miriam Corporation purchased machinery on January 1, 2014, at a cost of $380,000. The estimated useful life of the machinery is 5 years, with an estimated salvage value at the end of that period of $20,000. The company is considering different deprecia- tion methods that could be used for financial reporting purposes. Instructions (a) Double-declining-balance (a) Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. (b) Which method would result in the higher reported 2014 income? In the higher total reported income over the 5-year period? (c) Which method would result in the lower reported 2014 income? In the lower total reported income over the 5-year period? exp. 2015 $91,200
- During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $63,000 14,500 6 years 5 years The machines were disposed of in the following ways: No a. Machine A: Sold on January 2, for $39,000 cash. b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). 1 Required: 1.&2. Prepare the journal entries related to the disposal of Machine A and Machine B on January 2 of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2 3 4 Date January 02 January 02 Residual Value $11,300 2,150 January 02 January 02 Estimated Life Cash No Journal Entry Required General Journal No Journal Entry Required Accumulated Depreciation (straight-line) $25,850 (3 years) 7,410 (3 years) Answer is not complete. Accumulated Depreciation-Equipment Equipment Gain…Elite Co. has office furniture that cost $75,000 and that has been depreciated $48,000. Record the disposal under the following assumptions: * It was exchanged for similar office furniture. The old furniture has a fair market value of $46000, and $8000 was paid. *It was exchanged for similar office furniture. The old office has a fair market value of $25000 and $29000 was paid.Monty Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $233,839. Over its 5-year useful life, the bus is expected to be driven 139,900 miles. Salvage value is expected to be $8,600. (a) Compute the depreciable cost per unit. (Round answer to 2 decimal places, eg 0.50.) Depreciation cost per unit per mile eTextbook and Media Save for Later (b) Prepare a depreciation schedule assuming actual mileage was: 2022, 34,900: 2023, 28,000; 2024, 40,000; and 2025, 37,000. (Round cost per unit to 2 decimal places, eg 15.25 and all other answers to O decimal places, eg. 5,275.) Computation Annual Depreciation Expense Units of Depreciation Accumulated Year Activity Cost /Unit Depreciation 2022 2023 2024 2025
- Star Company purchased a computer on January 2, 2012, at a cost of $2,500. The computer is expected to have a useful life of five years and a residual value of $250. Assume that the computer is disposed of on July 1, 2015. Using the straight line method, record the depreciation expense for half a year and the disposal under each of the following assumptions: 1. The computer is discarded. 2. The computer is sold for $400. 3. The computer is sold for $1,100Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200. (a) X Your answer is incorrect. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit LA $ 1.40 per mileMario Ltd purchased a machine for GHS 50,000 on 1 January 20X1. The machine was judged to have a five-year life with a residual value of GHS 5,000. During 20X3, the market for the product declined and the machine was sold on 1 January 20X4 for GHS 7,000.According to IAS 16 Property, Plant and Equipment, what was the loss on disposal?
- SSG bought a machine for $40,000 in January 19W8. The machine had an expected useful life of six years and an expected residual value of $10,000. The machine was depreciated on the straight-line basis. In December 20X1, the machine was sold for $15,000. The company has a policy in its internal accounts of combining the depreciation charge with the profit or loss on disposal of assets. The total amount of depreciation and profit/loss charged to the internal income statement over the life of the machine was $ ........................................Mario Ltd purchased a machine for GHS 50,000 on 1 January 20X1. The machine was judged to have a five-year life with a residual value of GHS 5,000. During 20X3, the market for the product declined and the machine was sold on 1 January 20X4 for GHS 7,000. According to IAS 16 Property, Plant and Equipment, what was the loss on disposal? A. GHS 27,000 B. GHS 13,000 C. GHS 16,000 D. GHS 23,000A machine with a cost of $170,000 and accumulated depreciation of $105,000 is sold for $56,000 cash. The amount of the loss related to the sale of this machine should be reported in the operating section under the indirect method is: Multiple Choice O O O $83,000. $27,000. $5,600. $15,000. $9,000.