What is the gain or loss to be recognized on the sale

Assignment Help Accounting Basics
Reference no: EM132864973

On January 1, 2017, Waling waling Company sells its equipment with a carrying amount of 160,000. The company receives a non-interest bearing note due in 3 years with a face amount of 200,000. The prevailing interest rate for a note of this type is 12%.

PV of 1 for 3 periods 0.71178

PV of an ordinary annuity of 1 for 3 periods 2.40183

Problem 1: What is the gain or loss to be recognized on the sale of the equipment?

Reference no: EM132864973

Questions Cloud

Which represent the adjustments made by samer ltd : Which represent the adjustments made by Samer Ltd regarding this transaction for the profit or loss of current year only (step four) at 30/6/2014.
How much revenue should Fasten company recognize : Fasten company signed a 1-year contract for $1,200 to provide internet services to a customer. How much revenue should Fasten company recognize
Which of the represent the adjustments made by alma ltd : Which of the following represent the adjustments made by Alma Ltd regarding this transaction for the current year only (step four) at 30/6/2014.
What alma recognizes : Shares of Rund Ltd for $ 80000, at this date the equity of Rund Ltd consisted of 150000 share capital and 20000 retained earnings. Alma recognizes
What is the gain or loss to be recognized on the sale : On January 1, 2017, Waling waling Company sells its equipment. What is the gain or loss to be recognized on the sale of the equipment?
What is the present value of the same annuity due : If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, what's the present value of the same annuity due
What amount of loss on factoring should be recognized : What amount of loss on factoring should be recognized? On December 1, 2017, Rose Company sold it accounts receivable (net realizable value, 260,000)
What is the net realizable value of accounts receivable : Cash sales (included in total sales) 300,000. What is the net realizable value of accounts receivable? What is the accounts receivable at the end of the year?
Determine the weighted-average number of shares : Determine the weighted-average number of shares that Metlock Corporation would use in calculating earnings per share for the fiscal year ended

Reviews

Write a Review

Accounting Basics Questions & Answers

  What problem is created by the use of lifo in this situation

From a financial reporting perspective, what problem is created by the use of LIFO in this situation? Describe the disclosure required to report the effects of this problem.

  The market yield for bonds of similar risk

A company issued 6%, 15-year bonds with a face amount of $75 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell?

  How the entry to record issuance of the bonds would include

How the entry to record the issuance of the bonds would include a?On October 1, 2017 Sunland Company issued 6%, 10-year bonds with a face value

  Journal entries to record bond related transactions

Prepare the journal entries to record bond related transactions as of the following dates Label each entry by date

  Determine the bulldog corporation reported taxable income

What is points the income tax imposed on the corporate income earned by Bulldog and the income tax on the bonus paid to Georgia?

  What deferred tax item that be recorded by pineapple ltd

Equipment purchased on 1 July 2021 for $200,000. If the company tax rate is 30%, the deferred tax item that will be recorded by Pineapple Ltd at 30 June 2022 is

  Elizabeth sweeney wants to accumulate 13000 by the end of

elizabeth sweeney wants to accumulate 13000 by the end of 12 years. if the annual interest rate is 6.10 percent how

  Installment-sales method revenue recognition approaches

Accounting, Analysis, and Principles Diversified Products, Inc. operates in several lines of business, including the construction and real estate industries.

  Calculate the equivalent units using the fifo method

Calculate the equivalent units using the FIFO method. Calculate the equivalent units using the Weighted Average method.

  Prepare the fund balance section of the general fund

Prepare the fund balance section of the general fund balance sheet for the Village of Hampton at December 31, 2021

  What is the contribution margin ratio for Bryan Company

Bryan Company budgets sales of $1,800,000, fixed costs of $1,000,000, and variable costs of $1,080,000. What is the contribution margin ratio for Bryan Company

  Prepaid insurance were properly recorded in all prior years

the Prepaid Insurance account was debited for the full cost

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