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.

Expert Solution

Working

A	Cost	$ 44,000.00
B	Residual Value	$ 1,500.00
C=A - B	Depreciable base	$ 42,500.00
D	Life [in years]	5
E=C/D	Annual SLM depreciation	$ 8,500.00

Requirement 1

Accounts title	Debit	Credit
Cash	$19,600
Accumulated Depreciation - Equipment ($ 8500 x 3 years)	$25,500
Gain on sale		$1,100
Equipment		$44,000

Requirement 2

Accounts title	Debit	Credit
Cash	$15,400
Accumulated Depreciation - Equipment ($ 8500 x 3 years)	$25,500
Loss on sale	$3,100
Equipment		$44,000

ekkarill92 answered 2 years ago

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

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.)

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.)

Mary Co. sold a machine that cost $78,000 and had a book value of $44,000 for...

Mary Co. sold a machine that cost $78,000 and had a book value of $44,000 for $45,000. Data from Mary's comparative balance sheets are: 12/31/21 12/31/20 Machinery $780,000 $650,000 Accumulated depreciation 175,000 135,000 Complete the cash flow statement below. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Mary Co. Partial Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021December 31, 2021For the Quarter Ended December 31,...

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%.)

Wardell Company purchased a mainframe on January 1, 2019, at a cost of $44,000. The computer...

Wardell Company purchased a mainframe on January 1, 2019, at a cost of $44,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $5,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $800. Required: 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. 2....

Abbott Inc. Minimum ending cash balance $80,000 Cost of Goods Sold (as a percentage of sales)...

Abbott Inc. Minimum ending cash balance $80,000 Cost of Goods Sold (as a percentage of sales) 60% Gross margin (as a percentage of sales) 40% Recent and forecast sales : March (Actual) $60,000 April 70,000 May 85,000 June 90,000 July 50,000 Desired ending inventories (percentage of next month's cost of goods sold) 30% Purchases paid as follows: In month of purchase 50% In following month 50% Collection on Sales Cash Sales 20% Credit Sales 80% All payments on credit sales...

reen Garden Company purchased a tractor at a cost of $240,000 on January 1, 2015. The...

reen Garden Company purchased a tractor at a cost of $240,000 on January 1, 2015. The tractor has an estimated residual value of $40,000 and an estimated life of 8 years. At the end of two years of service, Green Garden Co. reevaluated the tractor’s useful life. Management extended the useful life an additional four years, but estimated that the tractor would have no residual value at the end of this time. If the company uses straight-line depreciation, what amount...

You purchased a stock for $42.60 a share and sold it one year later for $44.30 a share.

You purchased a stock for $42.60 a share and sold it one year later for $44.30 a share. You received a total of $2.10 in dividends. What was your dividend yield on this investment? A.4.74 percent B.4.77 percent C.4.84 percent D.4.89 percent E.4.93 percent

Question