Lawler Clothing sold manufacturing equipment for $16,000. Lawler originally purchased the equipment for $80,000, and depreciation through the date of sale totaled $71,000. What was the gain or loss on the sale of the equipment?
Answer to relevant QuestionsCalaveras Tire exchanged machinery for two pickup trucks. The book value and fair value of the machinery were $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, respectively. To equalize ...Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor:Salaries ................................ $220,000Depreciation on R&D facilities and equipment ...Johnson Corporation purchased all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $7,800,000. The fair values of all of ...[This is a variation of the previous exercise.]Required:Assume the same facts as in Exercise 10-14, except that the fair value of the old equipment is $170,000. Prepare the journal entry to record the exchange.On January 2, 2011, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2012. The company borrowed $1,500,000 at 8% on January 1 to help finance the ...
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