Question
Question 1 Rogers Co. had a sheet metal cutter that cost $96,000 on January 5, 2010....
Question 1
Rogers Co. had a sheet metal cutter that cost $96,000 on January 5, 2010. This old cutter had an estimated life of ten years and a salvage value of $16,000. On April 3, 2015, the old cutter is exchanged for a new cutter with a fair value of $48,000. The exchange had commercial substance. Rogers also received $12,000 cash. Assume that the last fiscal period ended on December 31, 2014, and that straight-line depreciation is used.
Instructions
(a) Show the calculation of the amount of the gain or loss to be recognized by Rogers Co.
(b) Prepare all entries that are necessary on April 3, 2015.
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Vaughn Co. had a sheet metal cutter that cost $108,000 on January 5, 2016. This old...
Vaughn Co. had a sheet metal cutter that cost $108,000 on
January 5, 2016. This old cutter had an estimated life of ten years
and a salvage value of $16,000. On April 3, 2021, the old cutter is
exchanged for a new cutter with a fair value of $60,000. The
exchange lacked commercial substance. Vaughn also received $15,000
cash. Assume that the last fiscal period ended on December 31,
2020, and that straight-line depreciation is used.
(b)
Prepare all entries...
On January 1, 2010, the Felix Company purchased a machine to use in the manufacture of...
On January 1, 2010, the Felix Company purchased a machine to
use in the manufacture of its product. The invoice cost of the
machine was $260,000. At the time of acquisition, the machine had
an original estimated useful life of 10 years and an estimated
salvage value of $20,000. Annual depreciation was recorded at
$24,000 per year. The machine was depreciated using the
straight-line method.
On August 1, 2015, Felix exchanged the old machine for a newer
model. The new...
On January 1, 2010, the Felix Company purchased a machine to use in the manufacture of...
On January 1, 2010, the Felix Company purchased a machine to use
in the manufacture of its product. The invoice cost of the machine
was $260,000. At the time of acquisition, the machine had an
original estimated useful life of 10 years and an estimated salvage
value of $20,000. Annual depreciation was recorded at $24,000 per
year. The machine was depreciated using the straight-line
method.
On August 1, 2015, Felix exchanged the old machine for a newer
model. The new...
1. On December 1, 2016, Hogan Co. purchased a tract of land as a factory site...
1. On December 1, 2016, Hogan Co.
purchased a tract of land as a factory site for $780,000. The old
building on the property was razed, and salvaged materials
resulting from demolition were sold. Additional costs incurred and
salvage proceeds realized during December 2016 were as follows:
Cost to raze old
building
$70,000
Legal fees for purchase contract and to record
ownership $10,000
Title guarantee
insurance
$16,000
Proceeds from sale of salvaged
materials
$8,000
In Hogan’s December 31, 2016...
Louise Corp. owned all of the voting common stock of Thelma Co. On January 1, 2017,...
Louise Corp. owned all of the voting common stock of
Thelma Co. On January 1, 2017, Thelma sold a parcel of land to
Louise. The land had a book value of $32,000 and was sold to Louise
for $45,000. What journal entry, if any, should be recorded on the
consolidation work sheet for the consolidation the operations of
Louise Corp and Thelma Corp as a result of this
transaction? SHOW ALL WORK IN SUPPORT OF YOUR
ANSWER
Chaffee Co. owned...
1. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck....
1. Cambridge Company purchased a truck on January 1, 2018.
Cambridge paid $15,000 for the truck. The truck is expected to have
a $2,500 residual value and a 5-year life. Cambridge has a December
31 fiscal year end. Using the double-declining balance method, how
much is the 2019 depreciation expense? (Enter only whole dollar
values.) Hint: what is the year 2 depreciation amount?
2. Cambridge Company purchased a truck on January 1,
2018. Cambridge paid $22,000 for the truck. The...
Question 36 ABC Company issues $10,000,000, 8%, 10-year bonds at 96.5 on July 1, 2019. Interest...
Question 36
ABC Company issues $10,000,000, 8%, 10-year bonds at 96.5 on
July 1, 2019. Interest is paid on July 1 and January 1. The journal
entry to record the issuance will include
a debit to cash for $10,000,000
a credit to cash for $9,650,000
a credit to bonds payable for $9,650,000
a debit to discount on bonds payable for $350,000
Question 37
DEF Corporation retires its $100,000 face value bonds at 105 on
January 1, following the payment of...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 2 minutes ago
asked 5 minutes ago
asked 24 minutes ago
asked 46 minutes ago
asked 51 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago