As asset with a cost of $35,000 and accumulated depreciation of $25,000 is sold on June 30th

Question:

As asset with a cost of $35,000 and accumulated depreciation of $25,000 is sold on June 30th for $10,500. Annual straight - line depreciation is $5000.
Required:
a. What is the book value of the asset at the time of safe? (You need to record depreciation for Jan-June)
Book value
b. What is the amount of gain or loss on the disposal?
Gain on sale
c. How would the sale affect net income (Increase, decrease, no effect) and by how much?
Net income would by
d. How would the sale affect the amount of total assets shown on the (increases, decrease, no effect) and by how much? (Do not
Total assets would by
e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?
Effect
Section
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...