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Please explain on how to do these two questions Uno Company sold office equipment with a cost of $35,670 and accumulated depreciation of $31,879 for
Please explain on how to do these two questions
Uno Company sold office equipment with a cost of $35,670 and accumulated depreciation of $31,879 for $5,750. 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? (Loss amount should be indicated with a minus sign.) 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? C. by a. Book value b. Gain (loss) on sale Net income would d. Total assets would Cash flow would Section by by e. Banko Inc. manufactures sporting goods. The following Information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate $ 78,500 $ 2,000 $ 1,000 5 years 159,000 $ 2,000 During Year 1, the machine produced 55,000 units and during Year 2, it produced 57,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods: Year 1 Year 2 a. Straight-line b. Double-declining-balance c. Units of productionStep by Step Solution
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