1) Equipment that cost $138000 on January 1, 2025 was disposed of for $27000 in cash. The...
Question:
1) Equipment that cost $138000 on January 1, 2025 was disposed of for $27000 in cash. The accumulated depreciation at the time of the sale was $115000. The entry to record the sale would include a
a_credit to the Equipment account of $23000.
b-credit to Accumulated Depreciation of $115000.
c-debit to Loss on Sale of Plant Assets of $23000.
d- credit to Gain on Sale of Plant Assets of $4000.
2) Carla Vista Co. purchased a trademark from Rollings, Inc. for $2060000 on January 3, 2026. Brooks Consulting Co. LLC, an independent research company, estimated that the remaining useful life of the trademark was 10 years. The asset’s unamortized cost on Rolling’s books was $1543000. What amount should be reported as amortization expense for the trademark in Carla Vista’s 2026 income statement?
a) $103000
b) $206000
c) $77150
d) $154300
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura