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$200 cash 2. The shelving was sold for PROBLEM 9.4A During the curent year, Ramirez Developers disposed of plant assets in the following transactions Disposal of Plant Assets Office equipment costing $26,000 was given to a scrap dealer at no charge. At the date of disposal, accumulated depreciation on the office equipment amounted to $25,800 Feb. 10 Ramirez sold land and a building to Claypool Associates for $900,000, receiving $100,000 cash and a five-year, 9 percent note receivable for the remaining balance Ramirez's records showed the following amounts: Land, $50,000; Building, $550,00 Accumulated Depreciation: Building (at the date of disposal), $250,000. Ramirez traded in an old truck for a new one. The old truck had cost $26,000, and its accumulated depreciation amounted to $18,000. The list price of the new truck was Apr. 1 Aug, 15 S39.000, but Ramirez received a $10,000 trade-in allowance for the old truck and pa only $29,000 in cash. Ramirez includes trucks in its Vehicles account. The Oct. 1 Ramirez traded in its old computer system as part of the purchase of a new system old system had cost $15,000, and its accumulated depreciation amounted to $11.00. The new computer's list price was $8,000. Ramirez accepted a trade-in allowance of for the old computer system, paying $1,500 down in cash and issuing a one 8 percent note payable for the $6,000 balance owed. $500 Instructions a. Prepare journal entries to record each of the disposal transactions. Assume that ot u expense on each asset has been recorded up to the date of disposal. Thus, you need the accumulated depreciation figures stated in the problem. e that b. Will the gains and loses recorded in part a above affect the gross profit repo income statement? Explain. Explain how the financial reporting of gains and losses on plant assets di cial reporting of unrealized gains and losses on marketable securities disc e. differs from the iscussed in Chapter

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