Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2021 totaled

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Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2021 totaled $425,000. The estimated residual value of the equipment was $40,000 and the group depreciation rate was determined to be 18%.

(1) What is the annual depreciation for the group?

(2) If equipment that cost $42,000 is sold in 2022 for $35,000, what amount of gain or loss will the company recognize for the sale?

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Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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Question Posted: Sep 27, 2019 12:03 PM

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Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2021 totaled

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Intermediate Accounting

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