JT Enterprises decides to scrap its old widget-making machine, which has a book value of $8,600. The salvage company pays JT $8,700 for the machine. How should JT record this disposition? a.) as a $100 loss b.) as a $100 gain c.) as an $8,600 loss d.) as an $8,700 gain
Q: The cost of maintaining a certain permanent monument in Washington, DC occurs as periodic outlays of…
A: Given data, Periodic outlays=$2000 every year, No of years (n)=3 years Interest rate =8%
Q: Which is a incorrect statement below? A Change in revaluation surplus is an Oci that will be…
A: The income statement shows the net income or net loss that is calculated by deducting the expenses…
Q: Give examples where accounting is used as aid in performing the management functions
A: The accounting records are maintained for providing information to the external and internal users…
Q: Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid…
A: Formulas: Premium on Bonds Payable = Issue value of the bonds - face value of the bonds Interest…
Q: On March 1, 2022, England and Scotland formed a partnership named United Kingdom, England…
A: Mortgage- The word “mortgage” refers to a loan used to buy or maintain a home, land, or other types…
Q: Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 180,000 shares…
A: Stockholders equity = Common stock + Paid in capital in excess of par + Retained earnings - Treasury…
Q: 2021. The lease term is for ten (10) years with equal annual rental payments of $8,000 at the…
A: Lease Accounting Recognition of lease liability and Journal Entries
Q: Which of the following items retain their character when they are passed through to shareholders of…
A: The following items do not retain their characteristics when passed through shareholders. 1. Wages…
Q: D00. Ta aible fo
A: Introduction Additional refundable tax is computed as 1023% of the lesser of the following:…
Q: St. Laurence reports the following data: Throughout the year, St. Laurence has outstanding 150,000…
A: When Preferred shares are cumulative , then dividend in arrears are to be paid to the preferred…
Q: Morrill Company produces two different types of gauges: a density gauge and a thickness gauge.The…
A: The term "variable overhead" describes the fluctuating manufacturing costs that come with running a…
Q: Calculate the industrial building allowances for Lazida Sdn Bhd for all years up to YA 2014.
A: Industrial allowance is the construction cost spend on the construction of building, warehouse or…
Q: a. From the following list of balances, prepare the Accounts Receivable Control Account for the…
A: Control accounts shorten the time it takes to produce management account data since the control…
Q: $ 22,000 $ 52,800 $ 55,000 $170,000 $299,800 nits. Prepare a flexible budget for Blossom bas
A: Flexible budget adjusts as per the actual volume or activity. It changes as per the production and…
Q: Sapphire Computer Company has been purchasing carrying cases for its portable comput-ers at a…
A: Differential analysis is a decision-making approach that analyses the net effects of two…
Q: Madison Industries manufactures a single product using standard costing. Variable production costs…
A: The variance analysis is very helpful for the managers in controlling the cost or evaluating the…
Q: Vernhey Corporation, which follows ASPE, provides the following information about its defined…
A: Defined Benefit Plan For the defined benefit plan which are provided for the benefit of the…
Q: and has the following inventory transactions for the half year ending 31 December 2020: Units…
A: Weighted average method Under this method average rate is calculated to value the inventory.…
Q: Ending inventory value using LIFO? Date Description Quantity Unit Cost or Selling Price Dec. 31…
A: Introduction: LIFO: LIFO stands for last in first out. Which means last received inventory to be…
Q: Manufacturing P14,980.00 Transportation in P9,000.00 Supplies Office supplies Utilities office…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: REVIEW PROBLEM: SALE OF PROPERTY. PLANT AND EQUIPMENT The 1. M. Stoned Company acquired a machine…
A: The question is related to Property Plant and Equipment. The Cost includes: (i) its purchase price,…
Q: iculates incon tion costing. company to managers based oH operating of the division. In
A: In absorption costing we consider both variable and fixed costs as cost of…
Q: [The following information applies to the questions displayed below.] On January 1, Year 1, the…
A: Particulars Debit Credit Cash 27500 Accounts Receivable 15400 Allowance for Uncollectible…
Q: reipts: an from John ings
A: Jean Smith Profit and Loss A/c for the Year ended 31-03-206…
Q: The bank reconciliation shows the following adjustments: Deposits in transit: $862 Notes receivable…
A: Bank reconciliation (BRS): BRS is drawn up by the business to verify the cash book balance as per…
Q: During February 2022, the following occurred in the business of Nam-Tura Trading, a general dealer:…
A: All Bank and cash account are one of the most critical accounts. As these will measure the liquidity…
Q: Allocating payments and receipts to fixed asset accounts The following payments and receipts are…
A: Note: As per our guidelines, only the first three subparts must be answered. 1. Item Land Land…
Q: The following direct materials and direct labor data pertain to the operations of Ivanhoe Company…
A: * As per Bartleby policy, in case of multiple subparts, answer first three only. Total material…
Q: Danny’s YoYos sells high quality yoyos. The inventory, purchases, and sales for a recent month in…
A: given Danny’s YoYos sells high quality yoyos. The inventory, purchases, and sales for a recent…
Q: On June 30, the check register balance is $391.04. The service charge is $4.10, and interest earned…
A: A bank Reconciliation statement is a report that is prepared to know the differences between…
Q: What is the advantage of Making versus Buying? Give a scenario and explain the effect focusing on…
A: A make-or-buy decision is an act of choosing whether the product manufacture in-house or…
Q: e Taylors ag 175000 amc nnually. After
A: Solution :
Q: Question 1 Presented below is selected information related to Mohammed Ltd at December 31 20X1.…
A: Ans a) Determination of total Assets at December 31,20X1::: Equipment Account:::29,000..…
Q: The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $57,000,…
A: Present value is the current worth of future cash flows by taking into account the required rate.…
Q: A real property was transferred to a revocable trust with Carding as the beneficiary. The property…
A: Gross Rentals: 900,000 Expenses attributable to the maintenance of the property: 200,000 Total…
Q: Hepworth Company has implemented a JIT system and is considering the use of backflush costing.…
A: Frequent items that can be reported in journal entries include depreciation and bond amortization.…
Q: Journal entries?
A: Separate entries are passed for cash sales and cost of sales on May 1. Same on 9th May too.
Q: dy's life expecta nsion plan shoul
A: Pension refers to the form of benefit plan under which the employer makes a fixed amount of…
Q: Broke Corp. reports operating expenses in two categories (1) selling and (2) general administrative.…
A: Selling Expenses - Selling Expenses are those expense which are related to the selling activities of…
Q: is a correct statement below? A. Equity is the residual interest in the liabilities of the entity…
A: Option A is incorrect The correct statement is Equity is the residual interest in the assets of the…
Q: Northern, Inc. just finished its second year of operations. In the first year it produced 1,000…
A: Total production costs = Total Variable production costs + Fixed manufacturing overhead where, Total…
Q: Explain the Ordinary Assets
A: Ordinary Assets are normally recognised as those assets held for sale in the ordinary course of…
Q: The following transactions relate to A Inc. in 2020: Aug 1: Assigned P6,000,000 of accounts…
A: Accounts Receivable - Assigned The purpose of using the assigned account in the accounts receivable…
Q: On March 1, your checkbook balance is $565.02, and the bank statement balance is $464.07. An…
A: Bank Reconcilation: It is the method involved with matching the balance in bank balance as per…
Q: 1.How is cost recovery properly assessed that will account for tax benefit?
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Braxton's Cleaning Company stock is selling for $33.00 per share based on a required return of 11.4…
A: Dividend :::33$*14%=$4.62....
Q: TRUE OR FALSE? Once decided by management as an asset held for sale, management can never change…
A: An entity should classify an asset held for sale category when the carrying amount of an asset will…
Q: nits; unit selling price $73. it of finished goods: direct materials, 2 kg at $4 per kilogram g…
A: Direct Material 2kgs $ 4.00 $ 8.00 Direct Labour 4hrs $ 11.00 $…
Q: An entity purchased 8 year debt instruments with a face value of P4,000,000 on January 1, 2017 for…
A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
JT Enterprises decides to scrap its old widget-making machine, which has a book value of $8,600. The salvage company pays JT $8,700 for the machine. How should JT record this disposition?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Bravo Company's furnace, which has a current book value of $40,000 (original cost less than accumulated depreciation), has been destroyed. If the insurance company pays Bravo $45,000, which of the following transactions is Bravo supposed to record? Select the single best answer: A debit Cash $45,000 credit Equipment/Furnace $45,000 B. debit Cash $40,000, debit Equipment/Furnace $40,000 C credit Gain on Disposition of Equipment/Furnace $45,000, debit Cash $45,000 D. debit Equipment/Furnace $5,000 credit Equipment/Furnace $40.000, debit Cash $45,000 E credit Gain on Disposition of Equipment/Furnace $5,000 credit Equipment/Furnace $40,000; debit Cash $45.000Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse several years ago for $103,500, and it has claimed $41,600 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: a. Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $76,200, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $21,000 in cash in year 0 and a $87,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year O and in year 1. Complete this…Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year O and in year 1.
- A company purchased computers for $200,000. The installation charge of the computer was $10,000. Initially, the declared salvage value was $40,000. However, the company decided to sell the computer in the middle of 3rd year because of changing production plan. Fortunately, another company agreed to buy that computer for $50,000. Determine the gain or loss, if MACRS depreciation is used. Dont use excelH6. Denver Inc. has an old computer system. The computer originally costs Denver $90,000 and its current book value is $35,000. Answer the following questions: Do not use the account name of book value. There is no such account name as book value in accounting* 1) What is accumulated depreciation on the Denver's computer? 2) Journal entry if Denver discards the computer (for nothing). 3) Journal entry if Denver sells the computer for $90,000. Show proper calculationOn January 1,2014 the Mayfair Company has machinery on the books that originally cost $100,000. It sold the machine and recorded a $1,000 gain. Which of the following is true? Multiple Choice Mayfair sold the asset for less than its book value Mayfair sold the asset for more than its book value Mayfair sold the asset at book value Mayfair violated GAAP. None of the other alternatives are correct
- Joe's Restaurant Inc. purchased an oven for $10,000 and takes $9,000 of depreciation on that oven over three years. Under IRC §1011 the basis of the oven is $1,000. A sells the oven for $20,000 thereby realizing a gain of $19,000. How much of the gain is recaptured as ordinary income, and how much is treated as §1231 gain . a. 9,000 recaptured as ordinary income 10,000 treated as §1231 gain b. 10,000 recaptured as ordinary income 9,000 treated as §1231 gain c. 19,000 recaptured as ordinary income none treated as §1231 gain d. none recaptured as ordinary income 19,000 treated as §1231 gainRobertson Company exchanged a machine for some land. The machine had cost $17,000, was 70% depreciated, and could be sold for $4,500. Robertson paid $950 in addition to giving up the machine. Assume instead that Roberstonson exhanged the machine fora new, more efficient machine with a fair value of $4,700 while still paying $950 as before. compute the amount at which the new machine shoudl be recorededHauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leav no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in year 1, compute th amount and character of Hauswirth's gain or loss in year O and in year 1. Complete this question by…
- n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000?n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were increased to $60,000? Total Gain/Loss Recognized Character of Recognized Gain/Loss Ordinary Gain/Loss 1231 gain/lossIn year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a partnership? Total Gain/Loss Recognized Character of Recognized Gain/Loss Ordinary Gain/Loss 1231 gain/Loss