A machine cost 160,000, has annual depreciation expense of 32,000, and has accumulated depreciation of 80,000...
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A machine cost £160,000, has annual depreciation expense of £32,000, and has accumulated depreciation of £80,000 on December 31, 2021. On Oct 1, 2022, when the machine has a fair value of £104,000, it is exchanged for a similar machine with a fair value of £192,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Calculate the following: A. Depreciation Expenses on 31st of December 2022? B. Accumulated Depreciation on the date of transaction? C. Gain or Loss on the date of transaction? D. Cash paid or received as a result of this transaction? A machine cost £160,000, has annual depreciation expense of £32,000, and has accumulated depreciation of £80,000 on December 31, 2021. On Oct 1, 2022, when the machine has a fair value of £104,000, it is exchanged for a similar machine with a fair value of £192,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Calculate the following: A. Depreciation Expenses on 31st of December 2022? B. Accumulated Depreciation on the date of transaction? C. Gain or Loss on the date of transaction? D. Cash paid or received as a result of this transaction?
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Depreciation Expense on December 31 2022 The annual depreciation expense is 32000 and it is typicall... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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