Geiger Co. bought an asset that had a 4 year life for $100,000. At the end of
Question:
Geiger Co. bought an asset that had a 4 year life for $100,000. At the end of the 2nd year, Geiger Co. sold it for $60,000. This resulted in a gain of $5,000. If the company used straight-line depreciation, what was the accumulated depreciation for this asset?
Step by Step Answer:
tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style45 msonumberformat00220022 00000220022 00000220022 00220022 msostylenam...View the full answer
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
What single payment at the end of year 5 is equivalent to an equal annual series of payments of $800 beginning at the end of year 3 and ending at the end of year 12? The interest rate is 8%...
-
The following balances as at the 1 January 2020, were extracted from the accounting records of De Ligt Wholesalers. Balances at 1 January 2020 Land and Buildings Motor Vehicles at cost Accumulated...
-
Locate the centroid of the region bounded by the given curves. about x = 5, y = 2x2, y = 0, x = 5 < UseHorizontal ElementOf Area > x = 5 y = 2x? y = 0
-
Refer to PB4-2. PB4-2 Cactus Company's annual accounting year ends on June 30. It is June 30, 2013, and all of the 2013 entries except the following adjusting journal entries have been made: a. The...
-
In an X-ray tube (see Fig. 25-35 and discussion in Section 25-11), the high voltage between filament and target is V. After being accelerated through this voltage and electron strikes the target...
-
Discuss what steps can be taken in the healthcare setting to help prevent the spread of AIDS.
-
Griffin and Lasky, Inc. (G&L) supplies industrial automation equipment and machine tools to the automotive industry. G&L uses the percentage of completion method for recognizing revenue on its...
-
Please explain the optimal debt ratios and why do public utilities have high debt ratios? Please explain whether dividends increase or reduce shareholder value? How do you financially evaluate an...
-
Mighty Stars produces stars for elementary teachers to reward their students. Mighty Stars' trial balance on June 1 follows: MIGHTY STARS Trial Balance June 1, 2018 June 1 balances in the subsidiary...
-
Mousey Company purchased a depreciable asset for $1,000,000 on May 1, 2005. The estimated salvage value is $100,000, and the estimated useful life is 10 years. The straight-line method is used for...
-
Donna and Sherman Terrel are preparing a budget for 2010. Donna is a systems analyst with an airplane manufacturer, and Sherman is working on a master's degree in educational psychology. The Terrels...
-
Explain what a transfer price is, what the criteria should be for evaluating potential transfer price, and provide an example of transfer pricing in action assuming: a) excess capacity and b) no...
-
discuss the implications of social constructionism for social change and activism, particularly in terms of challenging oppressive structures and advocating for more inclusive and equitable social...
-
what ways does social constructionism critique mainstream psychology and other disciplines for their reliance on essentialist and universalizing theories, and how does it propose alternative...
-
How does social constructionism challenge traditional notions of objective reality and emphasize the role of language and discourse in shaping our understanding of the world?
-
Answer the following questions: a) If a bank depositor deposits $1,000 of currency to his checking account, what happens to reserves, checkable deposits, and the monetary base? b) If the Fed buys...
-
2. Economists use the term "money" in a more specialized way. a) Define money in terms of its functions, and briefly explain, with examples, the money creation role of commercial banks through...
-
Compare the major piecewise constant basis orthogonal functions, e.g., Walsh, Haar, block pulse function (BPF) and sampleand-hold function (SHF) with respect to their attributes and properties.
-
What are the key elements of a system investigation report?
-
Consider the set F and the operation of from Problem 34. Does the set F satisfy the given property for the operation of ? Give reasons. a. Associative b. Commutative Data from Problem 34 Consider...
-
What is meant by the statement. Inventories camouflage production problems and can cause overproduction? What is wrong with overproduction if you already own the raw material?
-
What are the primary goals of lean manufacturing?
-
Differentiate between essential and nonessential activities.
-
= 1 and we i) Consider the function h(x) =x sin(x). We seek to find where h(x) will do so by using the bisection method to find the root of f(x) = h(x) 1. Use the intermediate value theorem to argue...
-
A major sports league, comprised of 200 players, reported a loss of $580 million this year. The sports league has yearly fixed costs of $700 million. The league is considering shutting down for the...
-
Use the one-period model to explain why a tax on capital is not a good idea. Determine the effects of capital tax on aggregate output, consumption, employment, and the real wage. Please use diagrams...
Study smarter with the SolutionInn App