On June 1, 2018, ABC Company paid $162,000 to purchase equipment. The equipment was assigned a salvage value of $18,000 and a life of 15 years. The equipment will be depreciated using the straight line depreciation method. On April 30, 2026, ABC Company sold the equipment for $92,000 cash. Calculate the amount of the gain recorded on the sale of the equipment. Do not enter your answer with a minus sign in front of the number.
Gain $6,000 | |||
Cost | $162,000 | ||
Accumulated depreciation | $76,000 | [$9,600 x 7/12 + ($9,600 x 7 years) + $9,600 x 4/12) | |
Book Value | $86,000 | ||
Selling Price | $92,000 | ||
Gain | $6,000 | ||
Depreciation per year = | (Cost - Salvage Value)/Life of the assets | ||
= | ($162,000 - $18,000) / 15 years | ||
= | $9,600 | ||
On June 1, 2018, ABC Company paid $162,000 to purchase equipment. The equipment was assigned a...
On June 1, 2019, XYZ Company paid $129,000 to purchase equipment. The equipment was assigned a residual value of $12,000 and a life of 15 years. The equipment will be depreciated using the straight line depreciation method. On March 31, 2028, XYZ Company sold the equipment and recorded a gain on the sale of $7,140. Calculate the selling price of the equipment at March 31, 2028.
On June 1, 2019, XYZ Company paid $129,000 to purchase equipment. The equipment was assigned a residual value of $12,000 and a life of 15 years. The equipment will be depreciated using the straight line depreciation method. On March 31, 2028, XYZ Company sold the equipment and recorded a gain on the sale of $7,140. Calculate the selling price of the equipment at March 31, 2028.
On January 1, 2018, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 15 years and had a salvage value of $7,000. On January 1, 2024, ABC Company decided the life of the equipment should be revised from 15 to 18 years. Calculate the depreciation expense recorded on the equipment for 2024 assuming ABC Company uses the straight line depreciation method.
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On June 1, 2019, XYZ Company paid $129, 000 to purchase equipment. The equipment was assigned a residual value of $12,000 and a life of 15 years. The equipment will be depreciated using the straight Line depreciation method. On March 31, 2028, XYZ Company sold the equipment and recorded a gain on the sale of $7,140. Calculate the selling price of the equipment at March 31, 2028. 65,940
Question 5 On June 1, 2019, XYZ Company paid $129,000 to purchase equipment. The equipment was assigned a residual value of $12,000 and a life of 15 years. The equipment will be depreci ated using the straight line depreciation method On March 31, 2028, XYZ Company sold the equipment and recorded a gain on the sale of $7,140. Calculate the selling price of the equi pment at March 31, 2028.
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