Sony Company has decided to sell one of its old machines on December 31, 2019. The machinewas purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine wassold for $17,000, what was the amount of the gain or loss recorded at the time of the sale?nestionSelect one:a. The answer does not existb. $3,000C. $68,000d. $16,000.Time. $17,000Previous pageNext pageOSHIBAFIF2F3F4F5F6F7F8F9F10F11PRTSCSYSRQF12HOMPAUS-因*25HOME8PGUP9.Y !P4FG yH iKEND1PGDNVN iINSDELALTALT* 19E

Name: Sony Company has decided to sell one of its old machines on December
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Sony Company has decided to sell one of its old machines on December 31, 2019. The machinewas purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine wassold for $17,000, what was the amount of the gain or loss recorded

The amount of gain or loss on machinery sale or any other asset is evaluated with the difference in…

Business

Accounting

Sony Company has decided to sell one of its old machines on December 31, 2019. The mach. was purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine sold for $17,000, what was the amount of the gain or loss recorded at the time of the sale? son Select one: a. The answer does not exist b. $3,000 C. $68,000

Sony Company has decided to sell one of its old machines on December 31, 2019. The mach. was purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine sold for $17,000, what was the amount of the gain or loss recorded at the time of the sale? son Select one: a. The answer does not exist b. $3,000 C. $68,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 11MCQ

See similar textbooks

Similar questions

Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
Sony Company has decided to sell one of its old machines on December 31, 2019. The machine was purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine was sold for $17,000, what was the amount of the gain or loss recorded at the time of the sale? Select one: a. The answer does not exist b. $3,000 C. $68,000 d. $16,000. e. $17,000
Sony Company has decided to sell one of its old machines on December 31, 2019. The machine was purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine was sold for $17,000, what was the anmount of the gain or loss recorded at the time of the sale? Select one: a. $16,000. b. $17,000 C. $68,000 d. $3,000
Bennie Razor Company has decided to sell one of its old manufacturing machines on January 1, 2020. The machine was purchased for $80,000 on January 1, 2016, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $26,000, what was the amount of the gain or loss recorded at the time of the sale a. $22,000 loss O b. $26,000 gain c. $32,000 gain O d. $54,000 loss
Duck Pond Golf Club purchased equipment on January 1, 2024, for $16,979. Suppose Duck Pond Golf Club sold the equipment for $12,000 on December 31, 2025. Accumulated Depreciation as of December 31, 2025, was $7,546. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Now, journalize the sale of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not abbreviate.)
The Fisher Company purchased a machine on October 1, 2018, for $18,000. At the time of acquisition, the machine was estimated to have a useful kufe if five years and an estimated salvage of $5,000. Fisher has recorded monthly depreciation using the straigh-line method. On April 1, 2020, the machine was sold for $50,000. What should be the loss recognized from the sale of the machine? a. $0 b. $2,500 c. $5,000 d. $7,500
On January 1, 2021, Dunbar Echo Company sells a machine for $23,200. The machine was originally purchased on January 1, 2019 for $40,200. The machine was estimated to have a useful life of 5 years and a residual value of $0. Dunbar Echo uses straight-line depreciation. In recording this transaction: Multiple Choice a loss of $17,000 would be recorded. a loss of $920 would be recorded. a gain of $920 would be recorded. a gain of $23,200 would be recorded
Assume that Bloomer Company purchased a new machine on January 1, 2017, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2019, Bloomer discovered that the machine would not be useful beyond December 31, 2022, and estimated its value at that time to be $2,000. Required: 1. Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2017 to 2022. If necessary, round any depreciation calculations to the nearest dollar.
The Nickle Company purchased an asset for P17,000 on January 2, 2021. The asset has an expected residual value P1,000. The depreciation expense for 2021 and 2022 is shown next for three alternative depreciation methods: Year Method A Method B Method C 2021 P4,000 P6,400 P6,375 2022 4,000 4,800 3,984 Required Which depreciation method is the company using in each example? Compute the depreciation expense for 2023 and 2024 under each method
Bob's Construction Company sold a bobcat (equipment) to another construction company for $81,000 cash on January 1, 2019. The bobcat was originally purchased on January 1, 2017 for $200,000 and had an expected useful life of 7 years with no salvage value. Under the straight line depreciation method, what is the loss on the sale of the equipment on January 1, 2019? Assume that depreciation has been recorded through December 31, 2018 and enter a positive number for the loss.