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in the business for Sve years. The records of the s a worswide operaior and ranc

ID: 2584630 • Letter: I

Question

in the business for Sve years. The records of the s a worswide operaior and ranchiser of hotels and related lodging facities totaling nearly $1.5 bilion in net property and equipment Assume that Marriot replaced fumlfure that had been used company relected the following regerding the sale of the existing furniture $8,000,000 7,700,000 Required 1. Prepare the journal entry for the disposal of the furniture, assuming that it was sold for:(0f no entry Is required for a transaction/event, select "No Journal antry requlred in the first account fileld. Enter your answers in dolars not ln millions a. $300,000 cash b. $900,000 cash .$100,000 cash Journal entry worksheet Record the disposal of the cash rniture, assuming the nurniture sold for 300,000 Generai

Explanation / Answer

Cost of Furniture = 8,000,000

Accumulated Depreciation = 7,700,000

Carrying value of Furniture = Cost - Accumulated depreciation

= 8,000,000 - 7,700,000

= 300,000

a.

b.

Gain on sale = Sale value - Carrying value

= 900,000 - 300,000

= 600,000

c.

Loss on sale = Carrying value - Sale value

= 300,000 - 100,000

= 200,000

Cash 300,000 Accumulated Depreciation 7,700,000 Furniture 8,000,000