SP Ltd. has a December 31 year end. On April 2, 2020, SP purchased a piece of
Question:
SP Ltd. has a December 31 year end. On April 2, 2020, SP purchased a piece of equipment at a cost of $180,000. SP’s management estimated that this piece of equipment would have a useful life of five years and a residual value of $30,000. SP uses the straight-line method for depreciating its manufacturing equipment.
Required
If SP sold the piece of equipment on June 30, 2022, for $100,000, what amount of the gain or loss would have to be recorded?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
Depreciation expense 180000 30000 5 years 30000 per year or 12 2500 ...View the full answer
Answered By
Talha Talib
I am a member of IEEE society. As i am a student of electrical engineering badge 17 but beside of this i am also a tutor in unique academy. I teach calculus, communication skills, mechanics and economics. I am also a home tutor. My student Muhammad Salman Alvi is a brilliant A-level student and he performs very well in academics when i start to teach him. His weak point was mathematics but now he is performing well in mathematics. I am a scholarship holder in Fsc as i scored 1017 marks in metric out of 1100. Later on i got scholarship in Punjab Group of Colleges. I got 2nd position in robotics competition in 2018 as my project home automation select for the exhibition in Expocentre.
4.60+
23+ Reviews
62+ Question Solved
Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
Question Posted:
Students also viewed these Business questions
-
Jijang Excavations Ltd. (JEL) operates specialized equipment for installing natural gas pipelines. JEL, which has a December 31 year end, began 2020 with a single piece of equipment that had been...
-
Prepare all necessary journal entries for 2020, 2021, and 2022 related to each of the following scenarios: a. Astrom Ltd. purchased a piece of equipment on January 1, 2020, for $48,800. At the time,...
-
During a study session, one of your classmates states the following: Companies depreciate their capital assets over time because they understand that capital assets immediately begin to lose value...
-
A teacher has just given an algebra exam. What are some of the statistics she could compute?
-
In Problems a-c, construct the required examples. (a) Construct a 2 2 matrix that is invertible but not diagonalizable. (b) Construct a 2 2 matrix that is diagonalizable but not invertible. (c)...
-
If a function f is increasing on the intervals [3, 3] and [11, 19] and decreasing on the interval [3, 11] , determine the interval(s) on which g(x) = 3f (2x 5) is increasing.
-
Defendant Kenneth Blake was married to Charlene Hinton-Blake, who died in 2012. Three of Hinton-Blakes sisters, including Yvonne Hinton, assisted her with day-to-day care during a four-year period of...
-
Seneca Hill Winery recently purchased land for the purpose of establishing a new vineyard. Management is considering two varieties of white grapes for the new vineyard: Chardonnay and Riesling. The...
-
Compare and contrast benefits and challenges that exist between centralized database management systems and distributed database management systems. Identify potential business environments where...
-
Complete the level production plan, using the following information. The only costs you need to consider here are layoff, hiring, and inventory costs. If you complete the plan correctly, your hiring,...
-
Prepare all necessary journal entries for 2020, 2021, and 2022 related to each of the following scenarios: a. On January 1, 2020, Sustco Ltd. purchased a piece of equipment for $21,000. At the time,...
-
Healthlabs Ltd. purchased lab equipment for $18,000 on January 1, 2020. At that time, management determined that the equipment would have a useful life of three years with no residual value and that...
-
QSR magazine has been reporting on the largest quick-serve and fast-casual brands in the United States for nearly 15 years. The file QSR contains the food segment (burger, chicken, pizza, or...
-
Aduro Clean Technologies has the following share outstanding since their initial share offering: 31,000 shares of $3 cumulative preferred shares 60,000 common shares issued at $10 each The board of...
-
Today Magazine sells 10,000 subscriptions on account on December 31. The subscription price is $20 each. The subscriptions start on the following January 1, and run for 4 months. Today Magazine...
-
2. XYZ Ltd issued a 3-year, 6% note payable with a face value of $50,000. What is the total interest expense over the life of the note?
-
You know from your many experiences that success generally does not just happen. Motivation and determination are important factors. Planning and following the plan are important activities. Let's...
-
Dawn Sharp is the owner of Sharp's Sandwich Shop. Her shop is open 24/7 and serves many different types of sandwiches, from classic breakfast sandwiches to more exotic burgers and other sandwiches...
-
In the "All About You" feature, we introduced the idea that being financially literate has a major impact on our ability to meet our financial goals and even on our health and happiness. We all face...
-
If your school has a subscription to the FASB Codification, go to aaahq.org/ ascLogin.cfm to log in and prepare responses to the following. (a) What is the stock dividend? (b) What is a stock split?...
-
As a lender, discuss whether you would prefer to see long-term assets reported at historical cost or fair value. What advantages and disadvantages would you see under each valuation?
-
As an auditor, discuss how you might evaluate a companys property, plant, and equipment to decide whether the value of these assets was impaired and should be written down.
-
Reitmans (Canada) Limited is a leading Canadian retailer that operates more than 900 stores under the Reitmans, Smart Set, RW & Co., Thyme Maternity, Penningtons, and Addition Elle banners. The...
-
User On 1 0 / 0 1 / x 1 a company pays the rent of $ 6 6 0 for a storage unit to house its equipment. The rent cover the period 1 0 / 1 / x 1 through 3 / 3 1 / x 2 / . What will the entry on 1 0 / 0...
-
"If a machine with a cost of $50,000, a useful life of 5 years, and an expected production of 100,000 units, produces 20,000 units in a year, what would be the depreciation expense for that year...
-
Background information Membina Limited ( Membina ) is a large, Melbourne - based construction company that specialises in high - rise developments. One of the assets that support Membina s high -...
Study smarter with the SolutionInn App