Strawberry Fields purchased a tractor at a cost of $37,000 and sold it two years later...

Strawberry Fields purchased a tractor at a cost of $37,000 and sold it two years later for $23,800. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $7,000 residual value.

1. What was the gain or loss on the sale?

2. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Expert Solution

ekkarill92 answered 2 years ago

Strawberry Fields purchased a tractor at a cost of $39,000 and sold it two years later...

Strawberry Fields purchased a tractor at a cost of $39,000 and sold it two years later for $24,900. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $7,000 residual value. 1. What was the gain or loss on the sale? 2. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Abbott Landscaping purchased a tractor at a cost of $44,000 and sold it three years later...

Abbott Landscaping purchased a tractor at a cost of $44,000 and sold it three years later for $19,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $1,500 residual value. Tractors are included in the Equipment account. 1. Record the sale. 2. Assume the tractor was sold for $15,400 instead of $19,600. Record the sale.

logan's Landscaping purchased a tractor at a cost of $35,000 and sold it three years later...

logan's Landscaping purchased a tractor at a cost of $35,000 and sold it three years later for $10,000. Landscaping recorded deprecation using the straight-line method, a five-year service life, and a 5000 residue little value. Factors are included in the equipment account. The journal entry to record the sale would include

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would increase pretax operating cash flows before taking account of depreciation by $12,000 per year, and would be depreciated on a straight-line basis to zero over 5 years at the rate of $7,400 per year beginning the first year. (Thus, annual cash flows would be $12,000 before taxes plus the tax savings that result from $7,400 of depreciation.) The managers disagree about whether the tractor...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would increase pretax operating cash flows before taking account of depreciation by $13,000 per year, and would be depreciated on a straight-line basis to zero over 5 years at the rate of $7,400 per year, beginning the first year. (Thus, annual cash flows would be $13,000 before taxes plus the tax savings that result from $7,400 of depreciation.) The managers are having a heated debate...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would increase pretax operating cash flows before taking account of depreciation by $13,000 per year, and would be depreciated on a straight-line basis to zero over 5 years at the rate of $7,400 per year, beginning the first year. (Thus, annual cash flows would be $13,000 before taxes plus the tax savings that result from $7,400 of depreciation.) The managers are having a heated debate...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would increase pretax operating cash flows before taking account of depreciation by $12,000 per year, and would be depreciated on a straight-line basis to zero over 5 years at the rate of $7,400 per year, beginning the first year. (Thus, annual cash flows would be $12,000 before taxes plus the tax savings that result from $7,400 of depreciation.) The managers are having a heated debate...

An investor purchased a stock for $42.98 and sold it one year later for $46.17. The...

An investor purchased a stock for $42.98 and sold it one year later for $46.17. The investor also received a dividend payment of $0.13. What was the investor's realized capital gain rate? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%.) Hint: Realized capital gain: P1/P0-1

An investor purchased a stock for $21.36 and sold it one year later for $28.99. The...

An investor purchased a stock for $21.36 and sold it one year later for $28.99. The investor also received a dividend payment of $0.84. What was the investor's realized return? (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%.)

8. If the cost of goods sold is $100,000, sales are $200,000, merchandise purchases are $37,000,...

8. If the cost of goods sold is $100,000, sales are $200,000, merchandise purchases are $37,000, and ending merchandise inventory is $10,000, then the beginning merchandise inventory must be: 9. A merchandiser plans to sell 14,600 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month: Cost Cost Formula Cost of goods sold $60 per unit sold Advertising expense $150,000 per month Depreciation expense $70,000 per month Shipping expense...

Question

Strawberry Fields purchased a tractor at a cost of $37,000 and sold it two years later...

Solutions

Expert Solution

Related Solutions

Strawberry Fields purchased a tractor at a cost of $39,000 and sold it two years later...

Abbott Landscaping purchased a tractor at a cost of $44,000 and sold it three years later...

logan's Landscaping purchased a tractor at a cost of $35,000 and sold it three years later...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would...

Your firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would...

An investor purchased a stock for $42.98 and sold it one year later for $46.17. The...

An investor purchased a stock for $21.36 and sold it one year later for $28.99. The...

8. If the cost of goods sold is $100,000, sales are $200,000, merchandise purchases are $37,000,...