Question 6: Property, Plant and Equipment (20 points) - You are required to answer three questions from Questions 4 7 Strawberry Fields purchased a tractor at a cost of $38,000 and sold it two years later for $25,000. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $8,000 residual value. What was the gain or loss on the sale? Record the sale. Required: 1. Calculate the balance in the accumulated depreciation account at the end of the two year. Enter the journal entry (or use T-accounts) to record the depreciation in the second year. 2. Calculate the book value of the equipment at the end of the second year. 3. What is the gain or loss on the sale of the equipment at the end of the second year? 4. Record the sale of the equipment at the end of the second year. 5. The company has acquired land and the acquisition cost was $1,000,000. Why cant they depreciate the land? 6. An asset is overvalued in their books. Shall the company record anything?

> MGT45 final, without colutio X C Get Homework Help With CI X PDF to Word Converter - 10 x MGT15_final_without_solutix C Strawberry Fields Purchased X C Solved: Activity-based costin x + File C:/Users/New/Downloads/MGT15_final_without_solutions edited.pdf * MGT45_final_without_solutions-edited.pdf 9/11 c Question 6: Property, Plant and Equipment (20 points) - You are required to answer three questions from Questions 4-7 Strawberry Fields purchased a tractor at a cost of $38,000 and sold it two years later for $25,000. Strawberry Fields recorded depreciation using the straight line method, a five-year service life, and an $8,000 residual value. What was the gain or loss on the sale? Record the sale. Required: 1. Calculate the balance in the accumulated depreciation account at the end of the two year. Enter the journal entry (or use T-accounts) to record the depreciation in the second year. 2. Calculate the book value of the equipment at the end of the second year. 3. What is the gain or loss on the sale of the equipment at the end of the second year! 4. Record the sale of the equipment at the end of the second year. 5. The company has acquired land and the acquisition cost was $1,000,000. Why can't they depreciate the land: 6. An asset is overvalued in their books. Shall the company record anything? Type here to search O 11:30 AM 6/12/2020