Use the following information to answer the next 4 questions: The following are selected transactions affecting Aggie Company's long-term assets during the 2020 fiscal year.Apr 1 Purchased a truck for $36,000. The truck isexpected to last six years and have a $3,000 salvage value. The company uses straight-line depreciation for its trucks. June 1 Sold a computer for $20,000. The computer had been purchased for $95,000 on January 1, 2018.The computer was expected to last for five years with a salvage value of $5,000. The company uses the double-declining method to depreciate their computer equipment.Sept. 1 Sold a piece of machinery that was purchasedon January 1, 2018. The machine cost $60,000 and the company expected the machine to produce 36,000 units. The machine has an estimated salvage value of $6,000. The machine produced 5, 800 units in 2018; 5,500units in 2019; and 3,400 units in 2020. The sale of the machine resulted in a loss of $2,950. Required:7. Determine the book value of the truck as of December 31, 2020:A. $31,500B. $28,875C. $28,500D. $30, 500E. S31,875 8. Determine depreciation expense for 2020 on the computer:A. $5, 400B. S13, 680C. $12,033D. $5,700E. S8, 889 9. The journal entry to recognize the sale of the computer on June 1, 2020 would include a:A.Credit to computer for $28, 500B. Credit to gain on sale of computer for $8,500C. Debit to Accumulated Depreciation for $66, 500D. Debit to loss on sale of computer for $12,000E. Credit to gain on sale of computer for S11,111 10. Determine the amount of cash received as a result of the sale of the machine on September 1, 2020:A. $35,000B. S40, 900C. S21, 550D. S27, 450E. S42,600

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Description: Use the following information to answer the next 4 questions: The following are selected transactions affecting Aggie Company's long-term assets during the 2020 fiscal year.Apr 1 Purchased a truck for $36,000. The truck isexpected to last six years

Accumulated depreciation is a method of accounting for the annual reduction of an asset's value to a…

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Accounting

units in 2019; and 3,400 units in 2020. The sale of the machine resulted in a loss of $2,950. Required:7. Determine the book value of the truck as of December 31, 2020:A. $31,500B. $28,875C. S28, 500D. $30, 500E. 31.875 8. Determine depreciation expense for 2020 on the computer:A. S5, 400B. $13,680C. S12, 033D. $5,700E. S8, 889 9. The journal entry to recognize the sale of the computer on June 1, 2020 would include a:A. Credit to computer for $28, 500B. Credit to gain on sale of computer for S8, 500C. Debit to Accumulated Depreciation for $66, 500D. Debit to loss on sale of computer for $12,000E. Credit to gain on sale of computer for s 11.111 10. Determine the amount of cash received as a result of the sale of the machine on September 1, 2020:A. $35,000B. S40, 900C. $21, 550D. S27,450E. S42,600

units in 2019; and 3,400 units in 2020. The sale of the machine resulted in a loss of $2,950. Required:7. Determine the book value of the truck as of December 31, 2020:A. $31,500B. $28,875C. S28, 500D. $30, 500E. 31.875 8. Determine depreciation expense for 2020 on the computer:A. S5, 400B. $13,680C. S12, 033D. $5,700E. S8, 889 9. The journal entry to recognize the sale of the computer on June 1, 2020 would include a:A. Credit to computer for $28, 500B. Credit to gain on sale of computer for S8, 500C. Debit to Accumulated Depreciation for $66, 500D. Debit to loss on sale of computer for $12,000E. Credit to gain on sale of computer for s 11.111 10. Determine the amount of cash received as a result of the sale of the machine on September 1, 2020:A. $35,000B. S40, 900C. $21, 550D. S27,450E. S42,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6.
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