(a) Cinema Paradiso Company purchased equipment in 2013 for $110,000 and estimated a S10,000 salvage value...

 

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(a) Cinema Paradiso Company purchased equipment in 2013 for $110,000 and estimated a S10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2019, there was $70,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2020, the equipment was sold for $40,000, Indicate the accounts that are increased and/or decreased and by which amount to remove the equipment from the books of Brown Company on March 31, 2020. You must show all of your calculations to receive full credit (b) Genesis Company sold a machine for $8,000. The machine originally cost $33,000 in 2018 and $7,000 was spent on a major overhaul in 2021 (charged to the Equipment account). Accumulated Depreciation on the machine on the date of disposal was $30,000. Indicate which accounts are increased and /or decreased and by which amount to record the disposition of the machine. You must show all your work to receive full credit. (a) Cinema Paradiso Company purchased equipment in 2013 for $110,000 and estimated a S10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2019, there was $70,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2020, the equipment was sold for $40,000, Indicate the accounts that are increased and/or decreased and by which amount to remove the equipment from the books of Brown Company on March 31, 2020. You must show all of your calculations to receive full credit (b) Genesis Company sold a machine for $8,000. The machine originally cost $33,000 in 2018 and $7,000 was spent on a major overhaul in 2021 (charged to the Equipment account). Accumulated Depreciation on the machine on the date of disposal was $30,000. Indicate which accounts are increased and /or decreased and by which amount to record the disposition of the machine. You must show all your work to receive full credit.

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Parta First Accumulated Depreciation account need to be increased by 2500 then total Balance of accu... View the full answer