Question 21 On 31 December 2014 an aeroplane with a cost of $200 000 has accumulated depreciation written off of $90 000. If it was sold for $130 000 on 1 January 2015 how much will be recorded as the expense carrying-value on the disposal of the plane? a. $200 000 b. $130 000 c. $110 000 d. $90 000 Question 22 Assume that a machine with a cost of $9000 has accumulated depreciation of $4800 on the date of its disposal. If it was traded-in for $4000 on a new machine and the balance of $2000 was paid in cash what is the profit or loss on disposal of the old machine? (Ignore GST.) a. $2000 loss b. $200 loss c. $800 gain d. $3800 loss Question 23 Billys Computer Shop purchased some new equipment trading in old equipment with a carrying amount of $10 000. Cash of $9000 was paid to the supplier and a trade-in allowance of $7000 was granted. The new equipment should be recorded at: a. $19 000. b. $16 000. c. $9000. d. $7000. Question 24 The balance sheet of Doorbell Ltd at 31 December 2014 showed: $ Equipment 80 000 Accumulated depreciation of equipment 63 000 17 000 On 1 January 2015 the equipment was sold for $15 000. What is the accounting entry to record the receipt of the proceeds from the sale of the equipment? a. Debit bank $15 000; credit proceeds from sale of equipment $15 000 b. Debit bank $17 000; credit proceeds from sale of equipment $17 000 c. Debit bank $15 000; credit equipment $15 000 d. Debit bank $2000; credit proceeds from sale of equipment $2000 Question 25 Assume that a machine with a cost of $9000 has accumulated depreciation of $4800 on the date of its disposal. If it was traded-in for $4000 on a new machine and the balance of $2000 was paid in cash what is the profit or loss on disposal of the old machine? (Ignore GST.) a. $2000 loss b. $200 loss c. $800 gain d. $3800 loss