On January 1, 2019, Allen Corp. purchased equipment for $760,000. At the time, it was estimated that the equipment would have a 20 year useful life, and a salvage value of $80,000 at the end of that time. Allen uses straight line depreciation. On January 1, 2024, Allen sold the equipment for $560,375. What amount of gain or loss was reported on the sale? Enter a gain as a positive number or a loss as a negative number.

At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $630 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) Patent Goodwill The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a five-year useful life, no residual value, and is amortized using the straight-line method. $ 153 million 43 million 100 million At the end of 2024, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined: Plant and equipment: Undiscounted sun of future cash flows Fair value Patent: Undiscounted sum of future cash flows Fair value $ 83 million 63 million $ 20 million 13 million Goodwill: Fair value of Ellison Technology Corporation Book value of Ellison's net assets…

On 1/1/2018, ABC company purchased equipment costing $35, 000 where its useful life was 5 years and the salvage value was 55,000. ABC decided to use the straight-line method in calculating depreciation. In 2020, ABC found out that the accountant recorded wrongly $600 and 5900 for 2018 and 2019 respectively, instead of S6, 000 for each year, for depreciation. Equipment is depreciated for tax purposes using a straight-line method, with a tax rate of 40% The accounting entries in 31/12/2020 for the corrections are: Select one: a. All answers are false b. Accumulated depreciation $10,500 Cumulative effect of corrections of prior period errors $6, 300 Deferred tax Liabilities S4, 200 c. Cumulative effect of corrections of prior period errors $8, 400 Deferred tax Assets $2, 100 Accumulated depreciation $10, 500 Retained earnings S8, 400 Cumulative effect of correction of prior period error S8, 400 d. Cumulative effect of corrections of prior period errors S6, 300 Deferred tax Assets S4, 200…

Sabiha Purchased an Equipment on 1st January 2016 at a cost of OMR 200,000. The equipment has zero residual value and was to be depreciated over a estimated life of 10 years. On 31st December 2019, the asset revalues to fair value of OMR 160,000. Calculate the Revaluation Gain/ (Loss) on the asset?

ABC Corporation bought an equipment with a total cost of P4,000,000 on Jan. 1, 2016. It was depreciated using the straight-line method over 20 years with a salvage value of P400,000. On Jan. 1, 2020, there is a foreseen decrease in the useful life of the equipment to only 8 remaining years. Hence, the asset is being tested for impairment. The current fair value less cost to sell is P600,000 while the salvage value at the end of the useful life is P400,000. Annual net operating cash flows is foreseen to be at P200,000 per year. The effective interest rate to be used for impairment testing is 6%.   How much is the impairment loss?

In 2023, BayKing Company sold used equipment for $20,000. The equipment had an original cost of $90,000 and accumulated depreciation as of the date of sale was $69,000. BayKing also purchased held-to-maturity securities for $7,000. What is the gain or loss on the sale of the equipment? Group of answer choices $21,000 gain $1000 loss $14,000 loss $34,000 gain

Wildhorse Corporation purchased a machine on January 2, 2020, for $4900000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes: 2020 2021 2022 $980000 1568000 940800 O $83300 O $7840 2023 O SO O $117600 2024 2025 Assuming an income tax rate of 20% for all years, the net deferred tax liability that should be reflected on Wildhorse's balance sheet at December 31, 2021 be $563500 563500 284200

Oriole Corporation purchased a machine on January 2, 2020, for $4300000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes: 2020 $860000 2023 $494500 2021 1376000 2024 494500 2022 825600 2025 249400 Assuming an income tax rate of 20% for all years, the net deferred tax liability that should be reflected on Oriole's balance sheet at December 31, 2021 be $103200 $73100 $0 $6880

1. On November 4, 2020, GT Corporation sells a piece of its equipment. GT Corporation had initially purchased the equipment for $350,000. The company had recorded $230,000 in depreciation for this piece of equipment as of the date of sale. If GT Corporation receive $150,000 cash when they sell the equipment, they will report a November 2020 Income Statement; if they instead receive $100,000 cash when they sell the equipment, they will on their report a a. $150,000 gain; $100,000 gain. b. $80,000 gain; $130,000 loss. c. $30,000 loss; $20,000 gain. d. $30,000 gain; $20,000 loss.

5 On January 1, 2017, Cake Corporation purchased for P150,000, equipment having a useful life of ten years and an estimated salvage value of P8,000. Bennett has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2023, the equipment was sold for P28,000. As a result of this sale, Cake should recognize a gain (loss) of If you answer is loss, here is the format (PXXX,XXX). Example (P123,456) *