Question
In: Accounting
On January 1, 2015, Toshi Limited purchased a machine for $750,000. The machine was estimated to...
On January 1, 2015, Toshi Limited purchased a machine for $750,000. The machine was estimated to have a 20 year useful life with a residual value of $100,000. The company used the straight-line method to depreciate the machine.
On December 31, 2019, the company sold the equipment for $600,000 cash
Required
- Calculate the gain or loss on sale on the sale of the machine.
- Prepare the journal entry to recognize the sale of the machine.
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Requirement # 1 |
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DATE |
ACCOUNT |
DEBIT |
CREDIT |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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On January 1, 2015, a machine was purchased for $90,900. The
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Assume a fiscal year-end of September 30. Compute the annual...
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Assume a fiscal year-end of September 30. Compute the annual...
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Part 1
New attempt is in progress. Some of the...
On January 1, 2015, a machine was purchased for $107,100. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $107,100. The
machine has an estimated salvage value of $7,140 and an estimated
useful life of 5 years. The machine can operate for 119,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 23,800 hrs;
2016, 29,750 hrs; 2017, 17,850 hrs; 2018, 35,700 hrs; and 2019,
11,900 hrs.
(a)
Compute the annual depreciation charges over the machine’s life...
On January 1, 2015, a machine was purchased for $94,500. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $94,500. The
machine has an estimated salvage value of $6,300 and an estimated
useful life of 5 years. The machine can operate for 105,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 21,000 hrs;
2016, 26,250 hrs; 2017, 15,750 hrs; 2018, 31,500 hrs; and 2019,
10,500 hrs. Compute the annual depreciation charges over the
machine’s life assuming...
On January 1, 2015, a machine was purchased for $94,500. The machine has an estimated salvage...
On January 1, 2015, a machine was purchased for $94,500. The
machine has an estimated salvage value of $6,300 and an estimated
useful life of 5 years. The machine can operate for 105,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 21,000 hrs;
2016, 26,250 hrs; 2017, 15,750 hrs; 2018, 31,500 hrs; and 2019,
10,500 hrs. Assume a fiscal year-end of September 30. Compute the
annual...
On January 1, 2015, a machine was purchased for $110,700. The machine has an estimated salvage...
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machine has an estimated salvage value of $7,380 and an estimated
useful life of 5 years. The machine can operate for 123,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2015, 24,600 hrs;
2016, 30,750 hrs; 2017, 18,450 hrs; 2018, 36,900 hrs; and 2019,
12,300 hrs.
A. Compute the annual depreciation charges over
the machine’s life...
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Effective January 1, 2018, Reno decided to change to straight-line
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On January 1, 2018, a machine was purchased for $117,500. The machine has an estimated salvage...
On January 1, 2018, a machine was purchased for $117,500. The
machine has an estimated salvage value of $10,400 and an estimated
useful life of 5 years. The machine can operate for 119,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 23,800 hrs;
2019, 29,750 hrs; 2020, 17,850 hrs; 2021, 35,700 hrs; and 2022,
11,900 hrs.
(a)
Compute the annual depreciation charges over the machine’s life...
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