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
hoa [83]
3 years ago
15

A company sells a plant asset that originally cost $180,000 for $60,000 on December 31, 2007. The accumulated depreciation accou

nt had a balance of $90,000 after the current year's depreciation of $15,000 had been recorded. The company should recognize aa. $30,000 loss on disposal.b. $30,000 gain on disposal.c. $60,000 loss on disposal.d. $60,000 gain on disposal.
Business
1 answer:
Anton [14]3 years ago
7 0

Answer:

a. $30,000 loss on disposal

Explanation:

Companies frequently sell plant assets to dispose them. To recognize gain or loss on disposal:

First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.

Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss

On 31 December, 2007, the carrying amount of the asset = $180,000 - $90,000 = $90,000

Sale price - Carrying amount of the asset = $60,000 - $90,000 = -$30,000

=> The company recognizes loss on disposal $30,000

The entry should be made:

Debit Cash $60,000

Debit Accumulated depreciation account $90,000

Debit Loss on asset disposal  $30,000

Credit Plant asset $180,000

You might be interested in
What are the most important benefits of using virtual reality in business training?.
N76 [4]

The most important benefits of using virtual reality in business training is that its let the trainees undergo at similar experience that they will encounter in real world.

<h3>What is a Virtual Reality?</h3>

A Virtual Reality refers to a simulated experience that are very similar from the real world.

In conclusion, the most important benefits of using virtual reality in business training is that its let the trainees undergo at similar experience that they will encounter in real world

Read more about Virtual Reality

<em>brainly.com/question/26597344</em>

6 0
2 years ago
Advertisements masquerade as media content by:
matrenka [14]

Answer:A

Explanation:

Persuading is a way to to gain attraction

3 0
2 years ago
2. In its fund financial statements, the city would recognize the receipt of a new computer (to be used for general administrati
Virty [35]

Answer:

D

Explanation:

assets are items that have monetary value and are owned by a business.

8 0
3 years ago
Read 2 more answers
On June 30, 20X8, Lomond, Inc. issued twenty $10,000, 7% bonds at par. Each bond was convertible into 200 shares of common stock
salantis [7]

Answer:

c.$ 2.92 per share

Explanation:

The earnings per share is calculated by dividing the net income by the weighted average number of shares outstanding. The bond holders converted their bonds into shares on July 01, 20x9 so their shares were only outstanding for 6 months.

The weighted average number of shares is determined as follows:

January - June                                                                10,000 shares

July December 10,000 + (20 *200= 4,000 shares)      14,000 shares

The weighted average no of shares outstanding is    12,000 shares

The net income                                                           $  35,000

Earnings per share                                                      $ 2.92 per share      

7 0
3 years ago
Nautilus Co. acquired 100% of XYZ Corp. on January 2, 2020. During 2020, Nautilus sold goods to XYZ Corp for $700,000 that cost
Rus_ich [418]

Answer:

D. $1,370,000

Explanation:

4 0
3 years ago
Other questions:
  • One of the most common forms of segmenting consumer markets uses characteristics such as age, income, household size, and/or eth
    15·1 answer
  • Which building is widely regarded as the first skyscraper? empire state building chrysler building woolworth building home insur
    8·1 answer
  • By combining their resources and developing shared goals, procter &amp; gamble and walmart were able to increase the value to th
    6·1 answer
  • Manufacturing overhead costs incurred for the month​ are: Utilities $ 39 comma 000 Depreciation on equipment $ 24 comma 000 Repa
    11·1 answer
  • Identify each person in the table as structurally, frictionally, or cyclically unemployed.unemployment typestructuralfrictionalc
    14·1 answer
  • Accumulating capitala. requires that society sacrifice consumption goods in the present.b. allows society to consume more in the
    9·2 answers
  • What are 3 ways that the brain learns
    5·2 answers
  • Jackson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining, which uses ma
    6·1 answer
  • Many demographers predict that the United States will have zero population growth in the twenty-first century, in contrast to av
    6·1 answer
  • What information do consumer reporting agencies provide banks and lending businesses for a person's credit history when a person
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!