A company had a tractor destroyed by fire. The tractor originally cost $134,000 with accumulated depreciation...

A company had a tractor destroyed by fire. The tractor originally cost $134,000 with accumulated depreciation of $68,100. The proceeds from the insurance company were $29,000. The company should recognize

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ekkarill92 answered 2 years ago

A company had a piece of equipment destroyed by a tornado. The equipment originally cost $85,000...

A company had a piece of equipment destroyed by a tornado. The equipment originally cost $85,000 with accumulated depreciation of $60,000. The proceeds from the insurance company were $20,000. Should the company recognize a gain or a loss and for what amount?

1. What is the journal entry to record depreciation for a tractor that originally cost $100,000,...

1. What is the journal entry to record depreciation for a tractor that originally cost $100,000, has no salvage value, and a useful life of 5 years? Does the entry to record depreciation on the tractor affect net income? 2. What is the book value of the tractor after year 1 of depreciation? How did you calculate it? What is the book value of the tractor after 5 years of depreciation? What does this mean? 3. During the closing process,...

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...

Prior to a fire that destroyed most of its inventory, Tejada Company had inventory purchases during...

Prior to a fire that destroyed most of its inventory, Tejada Company had inventory purchases during the period of $40,000 and sales of $125,000. Tejada began the period with $95,000 in inventory. Tejada's typical gross profit percentage is 20 percent. Inventory that cost $5,000 survived the fire. Using the gross profit method, estimate the inventory loss from the fire. (Show your work.) Assuming the ending inventory for 2013 was overstated, indicate whether each of the following will be: a. Understated...

The Accumulated Depreciation – Equipment account of a clothing company had a balance of $110,000 on...

The Accumulated Depreciation – Equipment account of a clothing company had a balance of $110,000 on January 1, 2019. After adjusting entries were posted, the account showed a balance of $132,000 (at the end of 2019). During 2019, the company sold a piece of equipment that cost $45,000 for $22,000. This caused a loss of $1,000. What was the depreciation expense for 2019 if you assume the company did not dispose of other assets in 2019? Please show all steps.

143. A company's old machine that cost $59,000 and had accumulated depreciation of $47,100 was traded...

143. A company's old machine that cost $59,000 and had accumulated depreciation of $47,100 was traded in on a new machine having an estimated 20-year life with an invoice price of $70,900. The company also paid $60,100 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at: 143B. A company issued 7.0%, 5-year bonds with a par value of $160,000. The market rate when the bonds...

Nick had a business building destroyed in a fire. The old building was purchased for $375,000...

Nick had a business building destroyed in a fire. The old building was purchased for $375,000 and $60,000 of depreciation deductions had been taken. Although the old building had a fair market value of $425,000 at the time of the fire, his insurance proceeds were limited to $400,000. Nick found qualified replacement property which he acquired six months later for $390,000. Realized Gain/Loss Recognized Gain/Loss Basis in New Asset Katie traded computer equipment used in her business to a computer...

Lease or Sell Kincaid Company owns equipment with a cost of $363,300 and accumulated depreciation of...

Lease or Sell Kincaid Company owns equipment with a cost of $363,300 and accumulated depreciation of $56,600 that can be sold for $275,700, less a 3% sales commission. Alternatively, Kincaid Company can lease the equipment for three years for a total of $288,500, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Kincaid Company on the equipment would total $16,500 over the three year lease....

Beek’s house was destroyed by fire and claims were filed with the insurance company.

Beek’s house was destroyed by fire and claims were filed with the insurance company. The insurance company (insurer) hired James to investigate the fire as it was suspicious about the cause. Subsequently, the insurer denied the claims based on James’s report. Thompson sued the insurer and Cannon. Beek claimed to be a third party beneficiary of the James-insurer contract. Is Beek correct? If so what type of beneficiary is he and why?

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