Question
Moore Furniture Inc. sells retail furniture to the public. Moore recently sold three pieces of property. Use the spreadsheet below to calculate the gain or
Moore Furniture Inc. sells retail furniture to the public. Moore recently sold three pieces of property. Use the spreadsheet below to calculate the gain or loss on each of the following dispositions of property, plant, and equipment assets. Place your answer in the space provided. A loss should be indicated by a negative number (enter with a leading minus (-) sign).
| Furniture sold: | |
| Original cost of the furniture | 13,000 |
| Accumulated depreciation on the furniture | 11,500 |
| Fair Market value of replacement furniture | 18,000 |
| Sales price of the furniture sold | 1,800 |
| Gain or loss recognized | ? |
| Pickup truck exchanged for a new pickup truck: | |
| Carrying value of old truck | 18,000 |
| Fair value of old truck | 19,000 |
| Fair value of new truck | 25,000 |
| Cash paid to dealer | 6,000 |
| gain or loss recognized | ? |
| Equipment destoryed by fire; | |
| Original cost of equipment | 17,500 |
| Accumulated depreciation | 3,500 |
| Insurance proceeds | 15,000 |
| Cost to replace equipment | 23,000 |
| Gain or loss recognized | ? |
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Accounting and auditing research tools and strategies
Authors: Thomas Weirich, Thomas Pearson, Natalie Tatiana
8th edition
9781118806487, 1118027078, 1118806484, 978-1118027073
