Question: On May 1 , 2 0 2 1 , Vaughn Company sells office furniture for $ 2 9 8 8 0 0 cash. The office

On May 1,2021, Vaughn Company sells office furniture for $298800 cash. The office furniture originally cost $754000 when purchased on January 1,2014. Depreciation is recorded by the straight-line method over 10 years with a salvage value of $85000. What gain should be recognized on the sale?
(Hint: Use 7.333333 for years used in calculation.)
O $22300.
O $70800.
O $37900.
$35400.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

A vapour compression refrigerator works under the following conditions as shown in the table below. The working fluid is just dry at the end of compression. Plot: 1. the cycle very clearly on P-h and...

Q:

Gray & Greene Company is a relatively small private company with annual sales of $25,000,000, on a total asset base of $18,000,000. The company manufactures specialized parts for larger...

Q:

Focus on Fraud (Pg616) feature "WorldCom and Unusual Adjusting Entries," which explains how WorldCom executives used unusual journal entries to perpetrate their fraud. a. What is unusual about the...

Q:

1 . Arcadia purchased equipment for $510,000 with an estimated useful life of 10 years and a salvage value of $10,000 at the end of that time. Depreciation has been recorded for 7 years on a...

Q:

Example (1): Assume that on July 1, 2011, W Company sells office furniture for $ 16,000 cash. The office furniture originally cost $ 60,000. As of January 1, 2011, it had accumulated depreciation of...

Q:

On May 1,2021 , Concord Company sells office furniture for $291600 cash. The office furniture originally cost $733600 when purchased on January 1, 2014. Depreciation is recorded by the straight-line...

Q:

Question 1 Assume the unadjusted trial balance of Janiz Corporation shows Allowance for Doubtful Accounts with a credit balance of $928. Task: Prepare the adjusting entry assuming $2,828 is the...

Q:

1001: (3 x 2 marks - 6 marks) Q1 - On June 30, 2021, Rayan Construction Company sells office furniture for $16,000 cash. The office furniture originally cost $75,000. As of January 1, 2021, it had...

Q:

tAnswer Question 1 factory equipment for $7,000 mated ue he oigment willov00 saage a company purchased record the depreciation 7000-100 Anwer Question 2 ort Answer Question 1 ompany purchased factory...

Q:

Current Attempt in Progress Cullumber Chrome Bumpers bought two acres of land with an old office building on it that was deemed unusable. The cost was $508,800 of which Cullumber Chrome paid $84,800...

Q:

When a resistor is connected across the terminals of an ac generator (100 V) that has a fixed frequency, there is a current of 0.495 A in the resistor. When an inductor is connected across the...

Q:

Mansion is a famous restaurant in the French Quarter of New Orleans. Bouillabaisse Sophie is Mansions house specialty. Management is considering the purchase of a machine that would prepare all the...

Q:

P1.19 Ichiro Masaki of General Motors has patented a system that automatically adjusts a cars speed to keep a safe distance from vehicles in front. Using a video camera, the system detects and stores...

Q:

After several years of profitable operations, Javell, the sole shareholder of JBD Inc., a C corporation, sold 22 percent of her JBD stock to ZNO Inc., a C corporation in a similar industry. During...

Q:

Kendall and Siena are married and file a joint return. Siena is an employee and received a Form W-2. Kendall is a self-employed driver for Delicious Deliveries. Kendall and Siena had health...

Q:

Because of environmental considerations, acetone must be removed from air used in your chemical plant before the air is released into the atmosphere. The acetone is removed by absorbing it into water...

Q:

Your firm is the external auditor of Downe Ltd (Downe). It has accepted a non-audit engagement to review and report on the internal controls over sales, purchases and cash at Downe. Downe operates a...

Q:

1. How can looking at the ratio of total assets to total liabilities mislead an analyst? 2. A company has book equity of $20. After it is acquired, the combined balance sheet shows goodwill of $70,...

Q:

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

Q:

1. When you think about your own culture, your first thought may be your ethnicity or your race. But there may be many other cultural variables that are at least as important. As a clinical...

Q:

The cells that facilitate communication within your nervous system are called _____. Whats the main function of the parasympathetic division of your autonomic nervous system? a. to rev up your body...

Q:

The _____ is the part of your limbic system most directly involved in emotion, especially fear. a. cerebellum b. corpus callosum c. amygdala d. pons