Read, Study & Practice PRINTER VERSION BACKINEXT ASSIGNMENT RESOURCES Question1
ID: 2550074 • Letter: R
Question
Read, Study & Practice PRINTER VERSION BACKINEXT ASSIGNMENT RESOURCES Question1 sidual value of $S 600 that it has depreciated for the past 2 years using the double-di nis hin ba ance method at a rate of 40%, They sold HH Co. pu chased equip ment at the be nning of 2014 for $ 0 00 equipment at the beginning of 2016 for $30,000. wth a Question 1 Determine the amount of the gain or loss on the disposal of the equipment. guestion s SHOW LIST OF ACCOUNTS Review Results by is entered. Do Prepare the journal entry for its disposition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) the amounts,)t on(Credit Account Titles and Debit Credit SHOW LIST OF ACCOUNTSExplanation / Answer
Working Accumulated Depreciation for 2 years
Answer 1
Gain or loss on disposal of equipment = Sales value - (Purchase price - Accumulated depreciation)
= $30,000 - ($50,000 - $32,000) = $12,000 Gain
Answer 2
Year Working Amount 2014 $50000 * 40 % $20,000 2015 ($50000- $20,000) * 40 % $12,000 Accumulated Depreciation $32,000Related Questions
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