E7-44 Learning Objective 4: Determining the sale price of property and equipment

Question

E7-44 Learning Objective 4: Determining the sale price of property and equipment) Wilson Corporation reported the following for property and equipment (in millions, adapted): Year 20X720X6 Property and cquip$2403$2201 niin i la cra preciation :to::13,306) (12:08 llion for new property and equipment. Depreciation for During 20X7, Wilson paid $2,510 mi the year totaled $1,546 million. During 20X7, Wilson sold property and equipment for cash of $48 million. How much was Wilson's gain or loss on the sale of property and equipmernt during 20X7?

Explanation / Answer

Original cost of Property and Equipment sold = 22011-(24073-2510)= 448 Accumulated depreciation of Property and Equipment sold =(12087+1546)-13306 = 327 Book value of property and Equipment sold = 448-327 = $121 Loss on the sale = 121-48 = 73

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.