Calculate the gain or loss on disposal

Assignment Help Financial Accounting
Reference no: EM132951587

Problem 1: John Smith purchases a machine on July 1, 2018. The machine was purchased on credit for $660,000 ($600,000 + $60,000 GST). The machine has an expected life of 4 years and an expected residual value of $220,000, ($200,000 + $20,000 GST). The machine was sold on January 1, 2021 for $55,000 ($50,000 + $5,000 GST). The company uses straight-line depreciation. Calculate the gain / loss on disposal.

Reference no: EM132951587

Questions Cloud

How comply with each of the completing the task : Summarise how you would complete and comply with each of the Completing the task to your own level of authority or experience.
At what average price has chipotle issued its common stock : Shareholders' Equity December 31, 2014 Preferred stock, $0.01 par value, 600,000 shares authorized, At what average price has Chipotle issued its common stock
Assess the scope of payroll services that a bas agent : Assess the scope of payroll services that a BAS agent can provide and identify if you will require independent expert advice. Document the scope assessment
What is the pretax cost of debt : The bond currently sells for 94 percent of its face value. The company's tax rate is 35 percent. What is the pretax cost of debt
Calculate the gain or loss on disposal : Calculate the gain / loss on disposal. John Smith purchases a machine on July 1, 2018. The machine was purchased on credit for $660,000
Estimate of the stock current price : A company currently pays a dividend of $2.2 per chare (Do=$2.2). It is estimated that the company's dividend will grow at a rate of 16% per year for the next 2
Is advantageous or possible to use the money saved : Is it advantageous or possible to use the money saved (excess cash) from not holding inventory too long, i,e, utilizing the Just in Time (JIT) inventory system
Why insurance matters : Why Insurance matters. This must be your own word. Not even one sentence can come from another source. Please a Big page answer
What is the overall standard deviation : You have invested in a combination of the Gecko Fund (which has a Sharpe ratio of 0.415) and the risk free asset. If the risk-free rate is 2.7% and your overall

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute the maximum profit given the optimal mix

Formulate the problem as a linear programming problem. Determine the optimal mix using a graph. Compute the maximum profit given the optimal mix.

  How to recognize the research and development costs

How to recognize the research and development costs. Your discussion should include reference to both the Conceptual Framework and IAS 38 Intangible Assets

  Prepare journal entry using the spreadsheet journal entries

Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2015. You need to prepare journal entries for only #1 above.

  Determine the gross pay for the week

An employee earns $16 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Determine the gross pay for the week

  Explain the difference between a budget and a financial plan

Describe 2 (two) of the budget negotiation strategies discussed in the modules. Explain the difference between a budget and a financial plan

  Employees are paid every saturday for the preceding work

employees are paid every saturday for the preceding work week. if a balance sheet is prepared on wednesday december

  What is the initial investment outlay

The company spent and expensed $150,000 on research related to the new project last year. What is the initial investment outlay

  You are the possessor of a retail store conducting

you are the possessor of a retail store conducting merchandising activity. you need to go to the bank for a loan and

  What may be written off over time for tax purposes

Estimated final salvage value of the machine is $120,000.The cost of this asset that, by law, may be written off over time for tax purposes is closest to

  Prepare portias consolidated financial statements

Prepare Portia's consolidated financial statements for the year ended December 31, 2020. Be sure to show all your supporting calculations.

  How the investment should be accounted for at acquisition

How the investment should be accounted for at the acquisition date and in Panther's December 31, 2020, year-end financial statements

  What is the current yield for bond p

What is the current yield for bond P?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd