Compute the gain or loss on disposal for financial report

Assignment Help Financial Accounting

Reference no: EM13143009

Mathews Bus Service traded in a used bus for a new one. The original cost of the old bus was $ 52,000. Accumulated depreciation at the time of the trade- in amounted to $ 34,000. The new bus cost $ 65,000, but Mathews was given a trade- in allowance of $ 10,000.

a. What amount of cash did Mathews have to pay to acquire the new bus?

b. Compute the gain or loss on the disposal for financial reporting purposes.

c. Explain how the gain or loss would be reported in the company’s income statement.

Reference no: EM13143009

Questions Cloud

Determining partner return on equity : During the year Daniel's share of partnership income was $8,500, while he received distributions from the partnership of $4,000. Daniel's partner return on equity is:

What is minimum number of digits necessary : When designing a chart of accounts for this business, what is minimum number of digits necessary to represent the general ledger account code, including subsidiary ledgers?

Net realizable of accounts receivable : The company estimates that it will be unable to collect 2% of accounts receivable. The net realizable of accounts receivable on the December 31, 2010 balance sheet will be:

What price should the investor offer : On the basis of this agreement, what price should the investor offer? A normal return on the fair value of net assets in this industry is 15 percent.

Compute the gain or loss on disposal for financial report : Compute the gain or loss on the disposal for financial reporting purposes. Explain how the gain or loss would be reported in the company’s income statement.

Benefits and costs of sarbanes-oxley : What are the benefits and costs of Sarbanes-Oxley? Should Sarbanes-Oxley be reformed? What provisions would you include in a revised Sarbanes-Oxley.

Do a market analysis for the product : Do a market analysis for the product. Each group may carry out some desk research and fieldwork and do a write up on the following details of a product your group have chosen.

Is company violating the accounting principle of consistency : Is the company violating the accounting principle of consistency by using different deprecia-tion methods in its financial statements than in its income tax returns? Explain.

Find probability none disjoint interval contain variables : Determine the probability that none of the 20 disjoint intervals Ij will contain more than one of the random variables X1...X12.

User Account

All Pages