Question: Industry Leading Manufacturers purchased equipment five years ago for
Industry Leading Manufacturers purchased equipment five years ago for $78,000. The company expects the equipment to have a salvage value of $3,000 after an eight-year useful life. Assuming the company uses straight-line depreciation; calculate the gain or loss realized if the company sells the equipment after four years for
1. $ 42,050.
2. $ 39,875.
Relevant QuestionsFast Pizza Delivery disposed of a delivery vehicle that had been used in the business for four years. The records of the company provide the following information:Delivery vehicle ......... $35,000Accumulated depreciation ...Auto Mechanics, Inc., purchased a new piece of equipment for one of the company’s repair shops on January 1, 2010. The invoice price was $64,700, but the salesperson gave Auto a 5% discount for paying cash for the ...Hope Construction purchased new equipment on January 1, 2011, for $55,000. The company expects the equipment to have a useful life of five years and no salvage value. The company’s fiscal year ends on December ...Bottling Company purchased equipment that cost $55,000. The company estimates that the equipment will last for four years and will have a salvage value of $5,000. The company uses the straight-line method of depreciation and ...Rachel works in a real estate office that is equipped with up-to-date copiers, scanners, and printers. She is frequently the only employee working in the office in the evenings and often has spare time to do personal work. ...
Post your question