Mertz Company sold office equipment with a cost of ($ 27,000) and accumulated depreciation of ($ 13,000)

Question:

Mertz Company sold office equipment with a cost of $\$ 27,000$ and accumulated depreciation of $\$ 13,000$ for $\$ 14,000$.

Required

a. What is the book value of the asset at the time of sale?

b. What is the amount of gain or loss on the disposal?

c. How would the sale affect net income (increase, decrease, no effect) and by how much?

d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much?

e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?

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Fundamental Financial Accounting Concepts

ISBN: 12

7th Edition

Authors: Thomas Edmonds

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Question Posted: May 16, 2024 09:00 AM

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Mertz Company sold office equipment with a cost of ($ 27,000) and accumulated depreciation of ($ 13,000)

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a What is the book value of the asset at the time of sale The book value of the asset is the cost of ...View the full answer

Fundamental Financial Accounting Concepts

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