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e-lub [12.9K]
3 years ago
13

Prepare journal entries to record these transactions. (If no entry is required, select "No Entry" for the account titles and ent

er 0 for the amounts.)
(a) Sandhill Co. retires its delivery equipment, which cost $49,500. Accumulated depreciation is also $49,500 on this delivery equipment. No salvage value is received.
b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $36,510 instead of 49,500.
Business
1 answer:
Oxana [17]3 years ago
5 0

Answer:

a.

Debit Accumulated depreciation account $49,500

Credit Delivery equipment asset $49,500

b.

Debit Accumulated depreciation account $36,510

Debit Loss on asset disposal  $12,990

Credit Delivery equipment asset $49,500

Explanation:

a. The cost of delivery equipment was $49,500 and its Accumulated depreciation is also $49,500 => there is no gain or loss on the disposal.

The entry is:

Debit Accumulated depreciation account $49,500

Credit Delivery equipment asset $49,500

b.

Calculating the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges: $49,500 - $36,510 = $12,990 > 0

The company will record the loss on the disposal by the entry:

Debit Accumulated depreciation account $36,510

Debit Loss on asset disposal  $12,990

Credit Delivery equipment asset $49,500

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Answer:

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Explanation:

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7 0
3 years ago
Determine whether each scenario is an example of tax avoidance or tax evasion. Andrea keeps a record of all her business-related
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Answer:

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2.Tax avoidance

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Explanation:

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Answer:

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