0n 12/31/2019, Sold Equipment that has a cost of $475,000; and accumulated depreciation of $225,000 The...

0n 12/31/2019, Sold Equipment that has a cost of $475,000; and accumulated depreciation of $225,000 The company received in exchange a Note which requires 6 annual payments of $50,000 The first payment occurs on 12/31/20. The stated rate of interest for the note is 6%. Required: A. Record the original transaction, for the seller. Record transaction through 12/31/22 B. Record the original transaction, for the purchaser. Record transaction through 12/31/22

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ekkarill92 answered 2 years ago

12/31/2019 Sold Equipment that has an cost of $475,000; and accumulated depreciation of $225,000 The company...

12/31/2019 Sold Equipment that has an cost of $475,000; and accumulated depreciation of $225,000 The company received in exchange a Note which requires 6 annual payments of $50,000 The first payment occurs 12/31/19. The stated rate of interest for the note is 6%. Record the original transaction, for the seller. Record the transactions through 12/31/22

Equipment with an original cost of $51,422 and accumulated depreciation of $33,306 was sold at a...

Equipment with an original cost of $51,422 and accumulated depreciation of $33,306 was sold at a loss of $5,155. As a result of this transaction, cash would a.increase by $12,961 b.increase by $51,422 c.decrease by $5,155 d.decrease by $33,306

Equipment that cost $594000 and has accumulated depreciation of $270000 is exchanged for equipment with a...

Equipment that cost $594000 and has accumulated depreciation of $270000 is exchanged for equipment with a fair value of $432000 and $108000 cash is received. The exchange lacked commercial substance. The new equipment should be recorded at: *Please show all work** The answer is $259,200 but not sure how to get it

Equipment that cost $398,100 and has accumulated depreciation of $318,900 is exchanged for equipment with a...

Equipment that cost $398,100 and has accumulated depreciation of $318,900 is exchanged for equipment with a fair value of $160,000 and $40,000 cash is received. The exchange lacked commercial substance. (a) Calculate the gain to be recognized from the exchange. Gain recognized $

Smith Co. sold equipment that had cost $8,000 and had accumulated depreciation of $6,700. The sale...

Smith Co. sold equipment that had cost $8,000 and had accumulated depreciation of $6,700. The sale price for the equipment was $2,000. The entry to record the sale will include a a. debit to Equipment for $8,000 b. credit to Accumulated Depreciation, Equipment, for $6,700 c. credit to Cash for $2,000 d. credit to Gain on Sale of Equipment for $700 Assuming that inventory costs have been rising throughout the period, use of the LIFO inventory method will produce a...

41. Smith Co. sold equipment that had cost $8,000 and had accumulated depreciation of $6,700. The...

41. Smith Co. sold equipment that had cost $8,000 and had accumulated depreciation of $6,700. The sale price for the equipment was $2,000. The entry to record the sale will include a a. debit to Equipment for $8,000 b. credit to Accumulated Depreciation, Equipment, for $6,700 c. credit to Cash for $2,000 d. credit to Gain on Sale of Equipment for $700 42. Kinder Co. purchased a car for $25,000, with an estimated useful life of 5 years and a...

Tamarisk Manufacturing has old equipment that cost $58,000. The equipment has accumulated depreciation of $27,200. Tamarisk...

Tamarisk Manufacturing has old equipment that cost $58,000. The equipment has accumulated depreciation of $27,200. Tamarisk has decided to sell the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) What entry would Tamarisk make to record the sale of the equipment for $32,000 cash? (b) What entry would Tamarisk make to record the sale...

Firm OCS sold business equipment with a $28,000 initial cost basis and $14,515 accumulated tax depreciation....

Firm OCS sold business equipment with a $28,000 initial cost basis and $14,515 accumulated tax depreciation. In each of the following cases, compute OCS’s recaptured ordinary income and Section 1231 gain or loss on sale. (Losses should be indicated with a minus sign. Leave no cell blank. Enter "0" for cells that do not have an amount.) Required: 1. Amount realized was $11,600. 2.Amount realized was $14,000. 3. Amount realized was $19,100. 4. Amount realized was $32,100.

Firm OCS sold business equipment with a $20,500 initial cost basis and $7,765 accumulated tax depreciation....

Firm OCS sold business equipment with a $20,500 initial cost basis and $7,765 accumulated tax depreciation. In each of the following cases, compute OCS's recaptured ordinary income and Section 1231 gain or loss on sale. (Leave no cell blank. Enter "0" for cells that do not have an amount. a.) Amount realized was $10,100 b.) Amount realized was $13,100 c.) Amount realized was $17,600 d.) Amount realized was $23,100

11. Warren has equipment with cost of $22,000 and accumulated depreciation of $16,000. If Warren sells...

11. Warren has equipment with cost of $22,000 and accumulated depreciation of $16,000. If Warren sells the equipment for $7,000, what is the gain or loss? A. gain of $7,000 b. loss of $1,000 c. gain of $13,000 d. gain of $1,000 12.How are partners compensated in a partnership? A. each partner receives a cash payment on 12/31 b. each partner gets a salary paid in cash c. each partner's capital receives a portion of the net income or loss...

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