How is the sale of equipment at an amount greater than its book value recorded? How would your answer change if the equipment is sold at an amount less than its book value?
Answer to relevant QuestionsWhat information does the fixed asset turnover ratio and the average age of fixed assets provide users of financial statements? What are the classifications of operating assets? How do they differ from one another? What objective should guide the selection of a depreciation method for financial reporting purposes? On August 30, Williams Manufacturing Company decided to sell one of its fabricating machines that was 15 years old for $6,000. The machine, which originally cost $105,000, had accumulated depreciation of $102,500. ...Laurel Cleaners purchased an automatic dry cleaning machine for $145,000 from TGF Corporation on April 1, 2011. Laurel paid $45,000 in cash and signed a five-year, 10 percent note for $100,000. Laurel will pay interest on ...
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