On January 2, 2015, Ditto Clothing Consignments purchased showroom fixtures for $12,000 cash, expecting the fixtures to remain in service for depreciated the fixtures on a double-declining-balance basis, with zero residual value. On October 31, 2016, Ditto sold the fixtures for $5,900 cash. Record both depreciation expense for 2016 and sale of the fixtures on October 31, 2016.
Answer to relevant QuestionsOn January 2, 2014, Pet Salon purchased fixtures for $48,200 cash, expecting the fixtures to remain in service for nine years. Pet Salon has depreciated the fixtures on a straight-line basis, with $5,000 residual value. On ...Commerce Bank recently traded in office fixtures. Here are the facts: Old fixtures New fixtures: Cost, $99,000 ............... Cash paid, $ 108,000 Accumulated depreciation, $65,000 ...... Market value, $ ...Middle Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Middle purchased goodwill as part of the acquisition of Shipley Wireless Enterprises, which had the following figures: Book value of ...During 2016, Dora Company completed the following transactions: Jan. 1 Traded in old office equipment with book value of $55,000 (cost of $124,000 and accumulated depreciation of $69,000) for new equipment. Dora also paid ...Dollar Bill Investments completed these long-term, available-for-sale investment transactions during 2016: Jan. 14 Purchased 200 shares of Microscape stock, paying $52 per share. The investment represents 4% ownership in ...
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