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fiasKO [112]
3 years ago
6

The Ryan Corporation uses the composite method and its composite rate is 7.5% per year. The entry that should be made when plant

assets that originally cost $80,000 and have been used for 10 years are sold for $24,000, is
Business
1 answer:
zhenek [66]3 years ago
7 0

Answer:

Under composite method, the accumulated depreciation account is debited or credited for the difference between the cost of the asset and the cash received from the retirement of the asset.

The journal entry to record the transaction is as below

Date   Account and Explanation                    Debit          Credit

          Cash                                                     $24,000

         <em> Accumulated depreciation - Plant      $56,000</em>

                   Plant assets                                                     $80,000

          (To record sale of plant assets)

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3 years ago
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At December 31 of the current year, Cart Company has a $16,000 Notes Receivable from a customer. Interest of 5% has accrued for
lyudmila [28]

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Balance sheet Extract

Other Income

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4 years ago
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3 years ago
38-41. X Corporation exchanged a warehouse located in New York for a warehouse located in New Jersey. The adjusted basis of the
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