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Corcoran Corporation acquired machinery & equipment on January 1, 2018. The company paid $50,000 for the machinery & equipment. In addition the company paid $5,000 for shipping, and $2,000 assembley. The company's accounting manager estimates the machinery & equipment to have a five-year useful life and a residual value of $5,000.
Problem 1: On December 31, 2022, Joel Harvey sold the truck for $7,000 cash. Compute the gain on sale using straight line depreciation method.
$2,000
$4,500
$4,700
$4,900
$5,000
$5,200
$6,750
$7,000
$7,050
$7,350
$7,500
$7,800
$9,000
$9,400
$10,000
$10,125
$10,400
$10,575
$11,025
$11,250
$11,700
$11,750
$12,250
$12,375
$12,500
$12,925
$13,000
$13,475
$13,750
$14,300
$50,000
$52,000
$55,000
$57,000
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