Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Could you please solve these questions with full explanations? thank you! Gunter Company purchased equipment for $300,000 with a salvage value of $40,000. Upon purchase,
Could you please solve these questions with full explanations? thank you!
Gunter Company purchased equipment for $300,000 with a salvage value of $40,000. Upon purchase, Gunter estimated that the equipment had a 10-year remaining useful life. The company uses the straight-line depreciation method. After holding the equipment for 5 years, the company sold it for $60,000. The entry to record the sale will include: Select one: a. Credit to Equipment for $170,000 . b. Debit to Loss on Sale of Equipment for $110,000 c. Credit to Gain on Sale of Equipment for $10,000 d. Debit to Depreciation Expense for $130,000 On June 30, 2019, Holman Construction issued 10-year bonds with a total face value of $2,500,000. When the 8% coupon rate bonds were issued, the market rate was 10%. Assuming that Holman pays interest every six months on December 31st and June 30th, what are the proceeds that Holman Construction received on the issue date, June 30, 20197 Select one: a $2,192,771.64 b. $2,188,444.74 . C. $2,839,758.16 d. $2,500,000.00Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started