Determine the amount of income recognized

Assignment Help Accounting Basics

Reference no: EM13148484

On November 1st Charlotte sells equipment for $100,000 to an unrelated party. $20,000 is received at closing and $20,000 will be received each November 1st for the next four years. Adequate interest is charged and received with each installment. The equipment originally cost $70,000 and is fully depreciated. Under section 1245 the depreciation must be recaptured in the year of sale. Using the installment sales method determine the amount of income recognized in the first and second years. You may ignore the interest income.

Reference no: EM13148484

Questions Cloud

Calculate the mass of propylene glycol required : To obtain the same antifreeze protection requires 76 of propylene glycol to replace each 62 of ethylene glycol. Calculate the mass of propylene glycol required to replace 7.00 of ethylene glycol.

Calculate overhead variances using variable costing : Which below may solve Dave's concern and still maintain the integrity of a standard costing system and not impact the company's operations. A) Use variable costing to calculate the overhead variances.

Write null and alternative hypothesis in symbolic form : Ten thousand fireflies are unable to produce light due to a genetic mutation. express the null hypothesis and the alternative hypothesis in symbolic form.

How are the carbohydrate and lipid tied together : How are the carbohydrate, lipid and protein metabolisms tied together? What is the significance of this?

Determine the amount of income recognized : Using the installment sales method determine the amount of income recognized in the first and second years. You may ignore the interest income.

Explain what is the percent by mass of carbon : carboxylic acids react with alcohols to form esters which are found in all plants and animals. what is the percent by mass of carbon in each of the following esters?

Describe the goals of the factory owners : Describe the goals of the factory owners? Describe the goals of the employees? Describe the problem caused by the scarcity. What is the price of a life.

Static budget variances-flexible budget variances : Tylon's Hardware uses a flexible budget to develop planning information for its warehouse operations. Determine the 20X9 static budget variances. Determine the 20X9 flexible budget variances.

Determine and interpret regression equation : Determine the regression equation. Interpret the equation. Do more bidders tend to increase or decrease the amount of the winning bid?

User Account

All Pages