# Question: Analyze each of the following independent scenarios a A machine

Analyze each of the following independent scenarios:
a. A machine that cost \$22,000 had an estimated useful life of three years with salvage value of \$1,000. After two years of using straight-line depreciation, the company sold the machine for \$8,000.
b. A van that cost \$40,000 had an estimated useful life of 10 years and a salvage value of \$4,000. After 10 years of using straight-line depreciation, the company sold the completely worn-out van for \$1,000 as scrap.
c. Equipment that cost \$45,000 had an estimated useful life of eight years and a salvage value of \$3,000. After four years of using double-declining balance depreciation, the company sold the equipment for \$14,750. (Round to the nearest dollar.)
d. An asset that cost \$21,000 had an estimated useful life of seven years and no salvage value. After six years of using straight-line depreciation, the company deemed the asset worthless and hauled it to the dump.

Requirement
For each scenario, calculate the gain or loss, if any, that would result upon disposal.

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• CreatedSeptember 01, 2014
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