Question

On January 1, 2020, the Accumulated Depreciation—Machinery account of Klopp, Inc. showed a balance of $703,000....

On January 1, 2020, the Accumulated Depreciation—Machinery account of Klopp, Inc. showed a balance of $703,000. At the end of 2020, after the adjusting entries were posted, it had a balance of $693,000. Depreciation expense for 2020 was $72,000. During 2020, one of the machines was sold for $53,000 cash. This resulted in a gain of $4,000. Assuming that no other assets were disposed of during the year, what is the original cost of the machine sold in 2020?

Homework Answers

Answer #1
Computation of Accumulated dep on machine sold:
Beginning balance of Accumulated dep 7,03,000
Add: Depreciation expense 72,000
Total 7,75,000
Less: Ending balance of Accumulated dep 6,93,000
Accumulated dep on machine sold 82,000
Sale value of machine sold 53000
Less: Gain on sale -4000
Book value of machine 49000
Add: Accumulated dep on machine sold 82000
Original cost of machine sold 131000
Answer is $131,000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, 2020, the Accumulated Depreciation—Machinery account of Astros Company showed a balance of $370,000....
On January 1, 2020, the Accumulated Depreciation—Machinery account of Astros Company showed a balance of $370,000. At the end of 2020, after the adjusting entries were posted, it showed a balance of $395,000. During 2020, one of the machines which cost $125,000 was sold for $60,500 cash. This resulted in a loss of $4,000. Assuming that no other assets were disposed of during the year, how much was depreciation expense for 2020?
During 2020, Sunland Company sold equipment that had cost $390000 for $234200. This resulted in a...
During 2020, Sunland Company sold equipment that had cost $390000 for $234200. This resulted in a gain of $16600. The balance in Accumulated Depreciation—Equipment was $1300000 on January 1, 2020, and $1230000 on December 31. No other equipment was disposed of during 2020. Depreciation expense for 2020 was $217600. $70000. $86600. $102400.
Rayya Co. purchases a machine for $210,000 on January 1, 2020. Straight-line depreciation is taken each...
Rayya Co. purchases a machine for $210,000 on January 1, 2020. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2024, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2024, and to record the sale under each separate situation. (1) The machine is sold for $105,000 cash. (2) The machine is sold for $88,200 cash. 1)Record...
. On its January 1, 2016, balance sheet, Calvin Company reported equipment of $60,000 and accumulated...
. On its January 1, 2016, balance sheet, Calvin Company reported equipment of $60,000 and accumulated depreciation of $20,000. During 2016, Calvin sold equipment with an original cost of $5,000. Selected information from Calvin's 2016 statement of cash flows follows: Net income                                                                    $20,000 Depreciation expense on equipment                      2,000 Gain on sale of equipment                                         600 Proceeds from sale of equipment                            1,500 Purchase of equipment                                               18,000 Required: Compute the amount of equipment and accumulated depreciation that should...
During 2017, Ly Company disposed of two different assets. On January 1, 2017, prior to disposal...
During 2017, Ly Company disposed of two different assets. On January 1, 2017, prior to disposal of the assets, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line)   Machine A $ 24,000 $ 2,000 5 years     $ 17,600 (4 years)   Machine B 59,200 3,200 14 years     48,000 (12 years) The machines were disposed of in the following ways: Machine A: This machine was sold on January 1, 2017, for $5,750 cash. Machine...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts Debit Credit Cash $ 84,000 Accounts Receivable 53,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 44,000 Building 84,000 Accumulated Depreciation 24,000 Land 214,000 Accounts Payable 34,000 Notes Payable (8%, due in 3 years) 48,000 Common Stock 114,000 Retained Earnings 254,000 Totals $ 479,000 $ 479,000 The $44,000 beginning balance of inventory consists of 400 units, each costing $110. During January 2020, the following transactions...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 42,000 $ 4,900 5 years $ 29,680 (4 years) Machine B 78,200 5,600 15 years 58,080 (12 years) The machines were disposed of in the following ways: Machine A: Sold on January 1 for $13,000 cash. Machine B: On January 1, this machine was sold to a salvage...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 84,700 $ 9,600 15 years $ 65,087 (13 years) Machine B 28,500 3,700 8 years 18,600 (6 years) The machines were disposed of in the following ways: Machine A: Sold on January 2 for $28,500 cash. Machine B: On January 2, this machine was...
During 2017, Ly Company disposed of two different assets. On January 1, 2017, prior to disposal...
During 2017, Ly Company disposed of two different assets. On January 1, 2017, prior to disposal of the assets, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 25,750 $ 2,500 5 years $ 18,600 (4 years) Machine B 67,200 3,450 15 years 55,250 (13 years) The machines were disposed of in the following ways: Machine A: This machine was sold on January 1, 2017, for $6,400 cash. Machine B: On...
Chapter 8 Question 4: Onslow Co. purchases a used machine for $288,000 cash on January 2...
Chapter 8 Question 4: Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $34,560 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end...