Question

On June 1, 2018, ABC Company paid $162,000 to purchase equipment. The equipment was assigned a...

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.
0 0
Add a comment Improve this question Transcribed image text
Answer #1
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
Add a comment
Know the answer?
Add Answer to:
On June 1, 2018, ABC Company paid $162,000 to purchase equipment. The equipment was assigned a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • On June 1, 2019, XYZ Company paid $129,000 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...

    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...

    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.

  • I'm not sure with my answer On June 1, 2019, XYZ Company paid $129, 000 to purchase equipment. The equipment was ass...

    I'm not sure with my answer 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...

    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.

  • On June 1, 2016, XYZ Company paid $375,000 to purchase land, a building, and some equipment. The market value of these a...

    On June 1, 2016, XYZ Company paid $375,000 to purchase land, a building, and some equipment. The market value of these assets on that date were: land $68,000; building $220,000; equipment $112,000. The equipment was assigned a useful life of 15 years and a $6,000 residual value. The equipment will be depreciated using the straight-line method. On November 30, 2022, XYZ Company sold the equipment for $39,300 cash. Calculate the amount of the loss recorded on the sale of the...

  • On June 1, 2016, XYZ Company paid $375,000 to purchase land, a building, and some equipment. The market value of these a...

    On June 1, 2016, XYZ Company paid $375,000 to purchase land, a building, and some equipment. The market value of these assets on that date were: land $68,000; building $220,000; equipment $112,000. The equipment was assigned a useful life of 15 years and a $6,000 residual value. The equipment will be depreciated using the straight-line method. On November 30, 2022, XYZ Company sold the equipment for $39,300 cash. Calculate the amount of the loss recorded on the sale of the...

  • 22. A company purchased factory equipment on January 1, 2018 for $200,000. It is estimated that...

    22. A company purchased factory equipment on January 1, 2018 for $200,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as Depreciation Expense at December 31, 2018 is a. $20,000 b. $18,000. c. $16,000. d. $14,000. 23. A company purchased factory equinment for $700,000. It is estimated that the equipment will have a $70,000 salvage value at...

  • On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life...

    On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life of 20 years and a $6,000 residual value. On January 1, 2023, ABC Company spent $53,000 to overhaul the equipment. This capital expenditure caused ABC Company to change the life of the equipment from 20 years to 28 years with a residual value at the end of the 28 years of $2,000. Assuming that ABC uses the straight-line depreciation method, calculate the book value...

  • On January 1, 2020, Harlow Company paid $137,000 to purchase a piece of equipment. Before the...

    On January 1, 2020, Harlow Company paid $137,000 to purchase a piece of equipment. Before the equipment could be used, Harlow had to spend $6,000 to put the equipment in working order. The equipment was assigned a useful life of 12 years and a residual value of $11,000. The straight-line method will be used to record depreciation on the equipment. On January 1, 2026, Harlow Company spent $27,000 to overhaul the equipment. This capital expenditure caused Harlow Company to change...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT