Question
Q3/ Please answer only Part E I have answers for all parts I need only answer for part E On December 31, 2018, the company
Q3/ Please answer only Part E I have answers for all parts I need only answer for part E
On December 31, 2018, the company sold some equipment for a loss of $2,820. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $55,960 and $15,256, respectively. Based on this information, what were the proceeds received when this equipment was sold?
Cash proceeds from sale | $ |
On January 1, 2016, Cullumber Corporation acquired equipment costing $77,440. It was estimated at that time that the equipment would have a useful life of eight years and no residual value. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31.
A/
Calculate the equipments accumulated depreciation and carrying amount at the beginning of 2018.
Equipments accumulated depreciation | $ | ||
Carrying amount | $ |
B/
What is the amount of the gain or loss that would arise when a quarter of the equipment was sold on January 1, 2018, for cash proceeds of $18,540?
LossGainfrom sale of equipment | $ |
C/
What is the depreciation expense for January 1, 2018, to October 31, 2018?
Depreciation expense | $ |
D/
On November 1, 2018, the company purchased additional equipment for $10,320 that also had a useful life of eight years and no residual value. What is the depreciation for the two months ending December 31, 2018?
Total depreciation for 2 months | $ |
E/
On December 31, 2018, the company sold some equipment for a loss of $2,820. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $55,960 and $15,256, respectively. Based on this information, what were the proceeds received when this equipment was sold?
Cash proceeds from sale | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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