E10-20 Record any impairment losses at December 31, 2014. Assume Kane Biotech ha
ID: 2427214 • Letter: E
Question
E10-20
Record any impairment losses at December 31, 2014. Assume Kane Biotech has recorded no impairment losses in previous years. Record depreciation for each asset at December 31, 2015. Assume that there was no change in the residual values or useful lives regardless of any impairment losses that might have occurred. the equipment produced 1,800 units during 2015. ZCL Composites sold a van on March 1, 2014. the accounts showed adjusted balances on February 28, 2014, as follows: Required Record the sale of the van assuming the cash proceeds were: dollar 20,150 dollar 21,600 dollar 19,200 dollar 0 (the van was scrapped).Explanation / Answer
Accumulated Depreciation as on 28th Feb 2014.
Debit
Credit
Accumulated depreciation Van
21,850
Van
21,850
A)
Debit
Credit
Loss on asset disposal
20,000
Accumulated depreciation
21,850
Machine asset
42,000
B)
Debit
Credit
Cash
21,600
Accumulated depreciation
21,850
Gain on asset disposal
1,450
Machine asset
42,000
C)
Debit
Credit
Cash
19,200
Accumulated depreciation
21,850
Loss on asset disposal
950
Machine asset
42,000
D)
Debit
Credit
Accumulated depreciation
21,850
Loss on asset disposal
20,150
Machine asset
42,000
Debit
Credit
Accumulated depreciation Van
21,850
Van
21,850
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