Question
If Ivanhoe, Inc. uses the composite method and its composite rate is 7.0% per year, what journal entry should the company record when plant assets
If Ivanhoe, Inc. uses the composite method and its composite rate is 7.0% per year, what journal entry should the company record when plant assets that originally cost $113000 and have been used for 10 years are sold for $39000?
1)
| Cash | 39000 |
| |
| Plant Assets |
| 39000 | |
2)
| Cash | 39000 |
| |
| Accumulated Depreciation - Plant Assets | 74000 |
| |
| Plant Assets |
| 113000 | |
3)
| Cash | 39000 |
| |
| Loss on Sale of Plant Assets | 74000 |
| |
| Plant Assets |
| 113000 | |
4)
| Cash | 39000 |
| |
| Accumulated Depreciation - Plant Assets | 79100 |
| |
| Plant Assets |
| 113000 | |
| Gain on Sale of Plant Assets |
| 5100 | |
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Auditing a risk based approach to conducting a quality audit
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
9th edition
9781133939160, 1133939155, 1133939163, 978-1133939153
