The ABC company bought a truck costing $100,000 two and a half years ago. The trucks estimated life was four years at the time of purchase. It was accounted for by using straight line depreciation with zero salvage value. The truck was sold yesterday for $15,000. what taxable gain must be reported on the sale of the truck?

The ABC company bought a truck costing $100,000 two and a half years ago. The trucks estimated life was four years at the time of purchase. It was accounted for by using straight line depreciation with zero salvage value. The truck was sold yesterday for $15,000. what taxable gain must be reported on the sale of the truck?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Galley purchased a property two years ago at a cost of $19,800, and the firm uses a three-year straight line depreciation method. The firm no longer uses this property so is selling it today at a price of $13,500. What is the amount of the pretax profit on the sale? A. 11140.48 B. 6900 C. 10500 D. 10702.4
Hampton Inc. purchased a machine to use in its business. The machine is estimated to have an economic life of 10 (ten) years before it becomes obsolete. The company expects to use the machine for 4 (four) years before it sells the machine to another company. Hampton uses the straight-line depreciation method. Question: How many years should Hampton depreciate this asset over? (4,7,10, or 14)
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Queen Restaurant purchased huge electric griller equipment amounting to P1,300,000. When the electric griller was permanently retired from use, the accumulated depreciation was P490,000 and has a salvage value of P70,000. How much is the deductible loss from permanent retirement?
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