Question

In: Accounting

Ouyang Inc. sold a piece of machinery for $350,000 on Dec 31, 2013 and reported the...

Ouyang Inc. sold a piece of machinery for $350,000 on Dec 31, 2013 and reported the following information related to the machinery with a straight-line depreciation method used.

Acquisition cost: $500,000

Acquisition date: 1 Jan, 2013

Residual value: 100,000

Years of useful life: 4

The result of the sale is most likely:

a loss of $25,000
a loss of $50,000
a loss of $150,000
a gain of $50,000
a gain of $250,000

Solutions

Expert Solution

Cost of Acquisition $ 500,000.00
Residual Value $ 100,000.00
Useful life 4 years
Sale value $ 350,000.00
Under straight line method , Depreciation = ( Cost of acquisition - Residual value ) / Useful life
(500000-100000)/4
$                             100,000.00
Therefore, Machinery as on 31/12/2013 500,000-100,000 = 4,00,000
Sale value $                             350,000.00
Loss $                             (50,000.00)

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

For the Dinera Corp. in 2014: Balance Sheet : Dec 31, 2014 | Dec 31, 2013...
For the Dinera Corp. in 2014: Balance Sheet : Dec 31, 2014 | Dec 31, 2013 Accounts Payable : 87,000 | 82,600 Taxes Payable : 2,500 | 15,000 Short-Term Debt : 20,000 | 20,000 Long-Term Debt : 100,000 | 100,000 Common stock ($0.10 par) : 520 | 500 Additional paid in capital : 32,500 | 40,000 Retained Earnings : 460,430 | answer Treasury Stock, (2000, 1600 shares) :  (15,000)         | (10,000) ◊―――――――――――――――――――――――――――――◊ Income Statement : 2014 Net sales : 402,800 Cost...
The following are excerpts from the balance sheet of a company. Particulars Dec 31, 2013 Dec...
The following are excerpts from the balance sheet of a company. Particulars Dec 31, 2013 Dec 31, 2012 Furniture 1,32,000 1,84,500 Accumulated Depreciation (88,700) (1,10,700) The income statement reports depreciation expense for the year as Rs 18,000. Also, furniture costing Rs 52,500 was sold for its book value. Compute the ash received from the sale.
LazyDaz, Inc. reported the following for its 2020 financial statements. Balance Sheet Dec 31, 2020 Dec...
LazyDaz, Inc. reported the following for its 2020 financial statements. Balance Sheet Dec 31, 2020 Dec 31, 2019 Difference Cash 526 315 211 Accounts Receivable 24 16 8 Allow for Doubtful Accounts (2) (1) (1) Inventory 21 32 (11) PP&E 1,709 1,750 (41) Land 809 660 149 Accumulated Depreciation (314) (300) (14) Patent 6 8 (2) Total Assets 2,779 2,480 Accounts Payable 37 19 18 Wages Payable 7 10 (3) Unearned Revenue 12 11 1 Interest Payable 57 50 7...
Yahoo! reported the following in its 2013 financial statements (in thousands): December 31, 2013 December 31,...
Yahoo! reported the following in its 2013 financial statements (in thousands): December 31, 2013 December 31, 2012 December 31, 2011 Revenues $4,680,380 $4,986,566 $4,984,199 Product development expenditure $1,008,487 $885,824 $919,368 Assume that Yahoo! expensed 90% of its product development expenditure. Required: List three types of costs that Yahoo likely includes in the product development line item on the income statement. Used FSET to record the product development expenditure of 2013. What type of product development expenditure might Yahoo! capitalize?
For the year ended Dec 31, 2020, King Inc. reported pretax accounting income of $800,000. Select...
For the year ended Dec 31, 2020, King Inc. reported pretax accounting income of $800,000. Select information is listed below: In 2020, the company started issuing stock options to its employees. The compensation expense related to stock options was $80,000. The compensation expense related to stock options is not deductible for tax purpose until the employees exercise the options in the future. 2) In 2020, the company purchased a piece of equipment with a cost of $500,000. For financial reporting...
For the year ended Dec 31, 2021, Arndt Inc. reported pretax accounting income of $700 million....
For the year ended Dec 31, 2021, Arndt Inc. reported pretax accounting income of $700 million. Select information is listed below: 1) The company begins selling one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 were $530 million. Subscriptions included in 2021 for financial reporting revenues were $470 million. 2) In 2020, the company purchased a piece of equipment with a cost of $500 million. For financial reporting purposes, the company used the straight-line method over...
For the year ended Dec 31, 2020, King Inc. reported pretax accounting income of $800,000. Select...
For the year ended Dec 31, 2020, King Inc. reported pretax accounting income of $800,000. Select information is listed below: 1) In 2019, the company purchased a piece of equipment with a cost of $500,000. For financial reporting purposes, the company used the straight-line method over a 5-year service life with no residual value expected. For tax purposes, the equipment was scheduled to be depreciated by $160,000, $140,000, $120,000, $50,000 and $30,000 in years 2019 through 2023, respectively. 2) During...
ABC company had the following balance sheet in millions of pesos on DEC. 31 2013 Assets...
ABC company had the following balance sheet in millions of pesos on DEC. 31 2013 Assets Cash 400 Acct rec. 200 Inventory 800 Net plant and equipment 600 Liabilities and net worth Acct pay 500 Long Term debt 300 Capital stock 400 Retained earnings 800 Relevant exchange rate $.08/peso inventory and capital stock was issued at this rate $.10/peso plant & equipment LT debt Ex rate for 31 dec 2013 $.12/peso ex rate 01 Jan 2014 As of 2013 assume...
You are given the following information. Please use it for the following 31-Dec-16 31-Dec-16 31-dec-17 31-Dec-17...
You are given the following information. Please use it for the following 31-Dec-16 31-Dec-16 31-dec-17 31-Dec-17 stock Price Shares Price Shares w 50$ 10000 25$ 20000 x 40$ 5000 25$ 10000 y 20$ 20000 30$ 20000 z 30$ 15000 40$ 15000 Stocks W and X had 2 for 1 splits on December 31, 2016. The information in the table for 2016 is pre-split. 3.4 Calculate the price weighted series for Dec 31, 2016, prior to the splits. 3.5 Calculate the...
Tesla Inc. Consolidated Balance Sheets (in thousands, except per share data) 31 Dec '17 31 Dec...
Tesla Inc. Consolidated Balance Sheets (in thousands, except per share data) 31 Dec '17 31 Dec '16 31 Dec '15 31 Dec '14 31 Dec '13 31 Dec '12 31 Dec '11 Total assets 28,655 22,664 8,068 5,831 2,417 1,114 713 Total current assets 6,571 6,260 2,782 3,180 1,266 525 373     Cash and cash equivalents 3,368 3,393 1,197 1,906 846 202 255     Short-term marketable securities -- -- -- -- -- -- 25     Restricted cash and marketable securities...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT