(a) Introduction: The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use. To calculate: Original cost of the equipment.

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Answer 1

Question

Chapter 12, Problem 22E

To determine

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

To determine

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

To determine

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.

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E12-14 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of the Sale of Equipment During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company's accounting records: From the Income Statement Depreciation expense Loss on sale of equipment From the Balance Sheet Beginning equipment Ending equipment $ 840 4,300 20,700 10,700 1,980 1,790 Beginning accumulated depreciation Ending accumulated depreciation No new equipment was bought during the period. Required: 1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) 2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from…

5. During the end of the year, YGX Company presented the following information: Equipment Accumulated depreciation However, the equipment is found to be impaired due to obsolescence as well as physical damage. At year-end, the company has determined the following information related to the equipment: Undiscounted net cash inflows Fair value less cost of disposal Value in use or discounted net cash inflows a. 1,500,000 b. 2,000,000 9,000,000 3,500,000 What amount should be reported as impairment loss for the year? c. 500,000 d. 0 4,500,000 3,500,000 3,000,000

During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company's accounting records: From the Income Statement. Depreciation expense Loss on sale of equipment From the Balance Sheet Beginning equipment. Ending equipment Beginning accumulated depreciation Ending accumulated depreciation No new equipment was bought during the period. Required: 1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) 2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? 3. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing…

Answer 2

Question

Chapter 12, Problem 22E

To determine

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

To determine

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

To determine

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 22E

To determine

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

To determine

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

To determine

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 22E

To determine

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

To determine

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

To determine

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.

Expert Solution & Answer

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See solution

Answer 5

Chapter 12, Problem 22E

To determine

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

To determine

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

To determine

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.

Answer 6

Chapter 12, Problem 22E

To determine

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

Answer 7

Chapter 12, Problem 22E

To determine

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

Answer 8

To determine

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

Answer 9

To determine

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

Answer 10

To determine

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.

Answer 11

To determine

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - What information does the statement of cash flows...Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q

(a) Introduction: The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use. To calculate: Original cost of the equipment.

Solution Summary: The author explains that the original cost of equipment is 6,000 and the accumulated depreciation expense is 300.

Concept explainers

Videos

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.

Want to see the full answer?

Chapter 12 Solutions

(a) Introduction: The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use. To calculate: Original cost of the equipment.

Solution Summary: The author explains that the original cost of equipment is 6,000 and the accumulated depreciation expense is 300.

Concept explainers

Videos

(a) Introduction: The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use. To calculate: Original cost of the equipment.

(b) Introduction: Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use. To calculate: Accumulated depreciation on the equipment.

(c) Introduction: An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company. To calculate: Cash received from the sale of equipment.

Want to see the full answer?

Chapter 12 Solutions

(a)

Introduction:

The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.

To calculate:

Original cost of the equipment.

(b)

Introduction:

Accumulated depreciation is the sum of total depreciation expense that has been allocated to fixed assets, since the asset was put to use.

To calculate:

Accumulated depreciation on the equipment.

(c)

Introduction:

An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.

To calculate:

Cash received from the sale of equipment.