1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bogdanovich [222]
2 years ago
14

A machine was purchased at a cost of $78,000. The equipment had an estimated useful life of five years and a residual value of $

3,000. Assuming the equipment was sold at the end of Year 4 for $8,000, determine the gain or loss on the sale of equipment. (Assume the straight-line depreciation method.)
Business
1 answer:
KiRa [710]2 years ago
6 0

Answer:

Loss on Sale of Equipment = $10,000.

Explanation:

The gain or loss on sale of Property, plant, and Equipment is calculated by comparing Carrying Value (Cost - Accumulated Depreciation) and Sale Proceeds. The carrying value of a machine at the end of 4th year is:

CV = 78,000 - { [ (78,000 - 3,000) / 5 ] * 4} = 78,000 - 60,000 = $18,000.

<u>Calculating Gain/Loss:</u>

Gain / (Loss) = Carrying value - Sales Proceeds = 18,000 - 8,000 = ($10,000).

Because the company has sold a machine worth of $18,000 for $8,000, so it has incurred a loss of $10,000 on the transaction. This loss is recognized in the Statement of Profit or Loss.

You might be interested in
Discuss how dollar-cost-averaging and the ten percent solution could make someone wealthy
labwork [276]
Dollar cost averaging is an investment technique which can make a person wealthy in the long run. In this technique, you will buy a particular stock constantly and regularly, regardless of the price. This will add-up and without noticing, you have acquired more than you'd imagine. On the other hand, Ten Percent Solution, you invest 10% of your earnings in a long-term investment, and is done on a regular basis.   
6 0
3 years ago
Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supp
bekas [8.4K]

Answer:

Manson will incur a loss of $10,300 by buying the part.

Explanation:

Purchases = 10,300 * $6 = $61,800

Variable cost = 10,300 * $5 = $51,500

Fixed cost = 10,300 * $3 = $30,900

Analysis:

<u>Details               Make ($)           Buy ($)         Net ($) </u>

Purchase                  0                  61,800          61,800

Variable              51,500                   0              51,500

Fixed                  30,900              30,900        <u>     0    </u>

Loss                                                                  <u> 10,300   </u>

Therefore, Manson will incur a loss of $10,300 by buying the part.

6 0
3 years ago
The main reason for the bank mortgage collapse of 2007 can be traced to
lorasvet [3.4K]
The djdjdjdjdjdjfjfjfjdndndndjdjejsjwjsjse is b
3 0
3 years ago
The lower the concentration ratio the
Papessa [141]
More competitive the industry.
7 0
2 years ago
16 Type the correct answer in the box. Spell all words correctly. Identify the kind of control decision involved in the given sc
Triss [41]

Answer:

its customer service!

Explanation:

5 0
3 years ago
Other questions:
  • Why studying central tendency alone is insufficient and calculating dispersion is always needed in both descriptive and inferent
    14·1 answer
  • while guiding organization members in appropriate directions, a manager exhibits a) consideration behavior c. authoritarian beha
    14·1 answer
  • Which of the following is a characteristic of the Consolidation phase of e-commerce? predominance of pure online strategies bran
    7·1 answer
  • Which of the following is true concerning federal budget deficits? I. The IRS spends more than it collects in taxes in a given y
    11·1 answer
  • During her psychology test, Kelsey could not remember the meaning of the term MNEMONICS. Surprisingly, however, she accurately r
    14·1 answer
  • What is the third rule to normalize a database?
    15·2 answers
  • The purpose of preparing a direct materials budget is to ________. multiple choice 1 allocate the cost of raw materials to produ
    5·1 answer
  • Suppose you have $12,000 in your checking account. You withdraw $500 cash from your account and hide it under your pillow for fu
    13·1 answer
  • The united states maintained its military superiority with a defense budget larger than the next __________ biggest military pow
    15·1 answer
  • preparing tywin company's statement of cash flows for the most recent year, the following information is available: purchase of
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!