Haystack company purchased a machine on January 1, 2015 for $48,000. The company estimates that the machine will have a $4,000 salvage value at the end of its 10 year useful life. On September 30, 2019 the machine was sold for a gain of $3,500. What must have been the selling price of the machine?

Q: On January 1, 2020, EA Co. bought a new machine. The total original cost of the machine is $255,000.…

A: The gain recognition process computes the gain or loss on the sale of machinery, considering all the…

Q: NUBD Co. purchased a new machine on January 1, 2021 for P350,000. The machine is expected to have a…

A: We have in the question, Initial Investment = P 350,000 Useful life = 8 years Discount Rate is 15%…

Q: The following balances were reported by ABC Co. at December 31, 2020 and 2019: 12/31/20 P2,600,000…

A: Cost of Goods Sold- Cost of goods sold refers to the cost of services and goods which are sold…

Q: In 2012, Ideal Time purchased equipment with a 10 year life valued at $547,000. To install and ship…

A: Total cost of the Equipment = purchased cost + install and ship cost = 547000+10900+7550 = P565,450

Q: Bob's Construction Company sold a bobcat (equipment) to another construction company for $81,000…

A: Fixed assets are those assets which are being purchased for long period of time. Depreciation is…

Q: On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that…

A: The cost of extracting natural resources from the earth, such as wood, minerals, and oil, is…

Q: Presented below are selected transactions at Sarasota Company for 2020. Jan.  1   Retired a piece…

A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…

Q: Moped, Incorporated purchased machinery at a cost of $44,000 on January 1, 2023. The expected useful…

A: The double-declining balance method uses the depreciation as the double of the straight-line method.…

Q: Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Prepare an incremental analysis for the 5 years showing whether Hancock should keep the existing…

A: Solution:- Step:-1 Calculation of Initial cash outflow Particulars Year 0 Value of the…

Q: Wildhorse Company purchased land and a building on January 1, 2022. Management’s best estimate of…

A: Depreciation is the allocation of cost of asset over the useful life of asset. It can be charged by…

Q: The total cost of a boiler is P1235902 including taxes and it can last up to 10 years. The company…

A: SYD = Sum of years depreciation Sum of years = ( n + 1) * ( n / 2 ) n = number of years = 10 years…

Q: Union Industries purchased equipment for $86,000 on January 1st, 2022. The useful life of the…

A: Depreciation is a reduction in value of asset due to wear and tear, technological advancement, other…

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: Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine…

A: A company can replace assets in a way that maximizes value and is in line with its strategic…

Q: A consulting company is buying a new computer system for their headquarters for $175,000. The asset…

A: New Computer Cost = $175,000 Asset Life = 5 Years

Q: On January 2, 2020, the Wally Company purchased land for P 450,000, from which it is estimated that…

A: Depletion is the reduction in value of something due to regular usage.

Q: Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has beendepreciated…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = ($9,800 - $1,400)…

Q: Miss Granny purchased a machine amounting to $700,000 on January 1, 2013 providing the newest kind…

A: At the time of making reclassification, the fair market value (FMV) of the respective element…

Q: ABC Company is considering replacing its machine with a newer one. The old machine has a book value…

A: Given: Purchase price = $1,193,422 Installation cost = $3,500 Net working capital = $11,000 Sale…

Q: Awni Company purchased a new machine on May 1, 2010 for €44,000. At the time of acquisition, the…

A: Monthly Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On January 2, 2020, the Wally Company purchased land for P 450,000, from which it is estimated that…

A: 1) Unit depletion Rate per ton = (P450,000 + P80,000) - P30,000 / 400,000 tons…

Q: PIKACHU purchased an equipment for P540,000 on January 1, 2020. The equipment has an estimated…

A: Depreciable cost = P540,000 - P60,000 = P480,000 Useful life = 5 years Sum of years of useful life =…

Q: Zhang Company is considering the purchase of a new machine. Its invoice price is $200,000, freight…

A: please give a like your response matters   Year 0 Year 1 Year 2 Year 3 Year 4…

Q: Rose Corp. acquired a new office machine on January 1, 2016, for $100,000. The machine has a 20-year…

A: Depreciation means reduction in value of asset over its useful life. Under straight line method,…

Q: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind…

A: Step 1 Noncurrent assets held for sale are those assets if they are held for immediate sale in a…

Q: The gain on reversal of impairment loss on December 31, 2016 is

A: Calculate impairment loss as on April 1, 2016 as shown below: Impairment loss = Cost - Accumulated…

Q: Sunland Company bought a machine on January 1, 2022. The machine cost $168000 and had an expected…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On July 4, 2020, ZY Company purchased the mineral rights to a granite deposit for 2,400,000. It is…

A: The depletion expense is charged on minerals with extraction and minerals sold during the period.

Q: On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that…

A: Depletion expense allows an owner or the extractor to charge the cost of reserves on the basis of…

Q: Suppose GENERAL MILLS sold a building for $120 million on June 1, 2021. GENERAL MILS originally…

A: If a fixed asset is sold, then gain or loss arises on the sale of such fixed asset is recorded as…

Q: The La Salle Bus Company has decided to purchase a new bus for $85,000 with a trade-in of their old…

A: Straight-line depreciation is the method of depreciation where the amount of depreciation remains…

Q: Sheridan Ltd. has a December 31 year end. On April 2, 2024, Sheridan purchased a piece of equipment…

A: The fixed assets are held by the organization for a long term that facilitate operations of the…

Q: On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that…

A: Depletion base includes Purchase cost development cost PV of anticipated restoration cost less:…

Q: A firm purchased 12-years ago a computerized machine worth P 936042. As the life of the machine was…

A: Sum of  Year 's Digit Method:  This method is an  accelerated depreciation  and depreciation is…

Q: You purchased in 2020 a new machine at $120,000 by trading it with an old machine. The old machine…

A: MACRS Depreciation The modified accelerated cost recovery system (MACRS) is mainly designed by the…

Q: Chuck Company operates an oil platform at the Pacific Ocean. An oil platform was built by the…

A: Impairment Loss = Carrying Amount - Recoverable Amount   Recoverable Amount is higher of  Value in…

Q: A company bought Machine 1 on March 5, 2014 for $5,000 cash. The estimated salvage was $200 and the…

A: Net present value (NPV) is one of the capital budgeting methods that is used to determine the…

Q: On January 2, 2017, RM Company purchased equipment costing P1,500,000.  The estimated useful life of…

A: Depreciation per annum of old machinery = (P1500000-P50000)/8. = P181250 per annum Depreciation for…