# Question

Erickson Electricity bought a utility truck for $70,000. The utility truck is expected to have an eight-year useful life and a salvage value of $6,000.

1. If Erickson sells the utility truck after four years for $40,000, would the company realize a gain or loss? How much? (Assume straight-line depreciation.)

2. What would the gain or loss be if the company sold the utility truck for $17,000 after six years?

1. If Erickson sells the utility truck after four years for $40,000, would the company realize a gain or loss? How much? (Assume straight-line depreciation.)

2. What would the gain or loss be if the company sold the utility truck for $17,000 after six years?

## Answer to relevant Questions

Uptown Bakery purchased a grain grinding machine five years ago for $21,000. The machinery was expected to have a salvage value of $1,000 after a 10-year useful life. Assuming straight-line depreciation is used calculate the ...Runnels’ Doggie Daycare purchased a building and land for a total cash price of $150,000. An independent appraiser provides the following market values: building, $59,500; land, $110,500.1. How much of the purchase price ...Big Apple Realty has decided to acquire a competing realty firm. The competitor firm has assets with a market value of $375,000 and liabilities with a market value of $110,000, and Big Apple pays $285,000. Use the accounting ...Vintage Records sold assets with an original cost of $45,000 and accumulated depreciation of $30,000. If the cash proceeds from the sale were $13,500, what was the gain or loss on the sale? On which financial statement would ...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 ...Post your question

0