Un Company sold office equipment with a cost of $42,750 and accumulated depreciation of $40,077 for...

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Un Company sold office equipment with a cost of $42,750 and accumulated depreciation of $40,077 for $5,030. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? e. How would the event affect the statement of cash flows (increase, decrease, no effect) and in what section? a. Book value b. Gain (loss) on sale c. Net income would d. Total assets would e. Effect on statement of cash flows e. Section Un Company sold office equipment with a cost of $42,750 and accumulated depreciation of $40,077 for $5,030. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? e. How would the event affect the statement of cash flows (increase, decrease, no effect) and in what section? a. Book value b. Gain (loss) on sale c. Net income would d. Total assets would e. Effect on statement of cash flows e. Section

Answer rating: 100% (QA)

a Book Value of the Asset at the Time of Sale The book value of the asset is calculated as the cost ... View the full answer