Depreciation is the correct answer
The accounts that will be used to record the disposal of the assets are Gain/loss on sale of asset and Sales Income
<h3>What is a
disposal account?</h3>
A disposal account calculates the gain or loss account that appears in the income statement.
The disposal account records the difference between the disposal proceeds and the net carrying amount of the fixed asset being disposed of.
Hence, the account that will be used to record the disposal of the assets is Gain/loss on sale of asset and Sales Income
Read more about assets disposal
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Answer:
$740,200
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
Mathematically,
Depreciation = (Cost - Salvage value)/Estimated useful life
Depreciation = (900,000 - 101,000)/5
= $159,800
Book value is the cost net accumulated depreciation
= $900,000 - $159,800
= $740,200
Answer:
The Journal entry is as follows:
D. Hopkins, Capital A/c Dr. $210,000
To cash A/c $200,000
To M. Hammer's Capital A/c $5,000
To P. Houghton's capital A/c $5,000
(To record the amount of Hopkins Capital balance)
Workings:
Income = D. Hopkins, Capital - Cash payment after his death
= $210,000 - $200,000
= $10,000
$10,000 is divided equally among M. Hammer and P. Houghton.
