Orbit Airways purchased a baggage- handling truck for $ 41,000. Suppose Orbit Airways sold the truck on December 31, 2014, for $ 28,000 cash, after using the truck for two full years and accumulating depreciation of $ 16,000. Make the journal entry to record Orbit Airways’ sale of the truck.
Answer to relevant QuestionsWhen one media company buys another, goodwill is often the most costly asset acquired. World Media paid $ 700,000 to acquire the Dandy Dime, a weekly advertising paper. At the time of the acquisition, the Dandy Dime’s ...Johnson purchased land having a current market value of $80,000, a building with a market value of $64,000, and equipment with a market value of $16,000. Journalize the lump-sum purchase of the three assets purchased for a ...Part 1. Millennium Printing manufactures high- speed printers. Millennium printing recently paid $ 1 million for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to ...Tonya’s Tanning Salon bought three tanning beds in a $ 10,000 lump-sum purchase. An independent appraiser valued the tanning beds as follows: Tanning Bed Appraised Value 1 $ 3,000 2 5,000 3. ...Richardson, Corp. aggressively acquired other companies. Assume that Richardson, Corp. purchased Lawrence, Inc. for $14 million cash. The market value of Lawrence’s assets is $22 million, and it has liabilities of $14 ...
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