What was the gain or loss on the sale

Assignment Help Accounting Basics

Reference no: EM13937789

Calculate depreciation under alternative methods and account for disposal of an asset.

A&W Root Beer Company bought new brewery equipment on January 1, 2008, for $64,000. The company expects the equipment to have a useful life of 8 years and a salvage value of $8,000. The company's fiscal year ends on December 31.

Required

a. Calculate the depreciation expense for the fiscal years 2008 and 2009 using each of the following methods:

1. Straight-line method

2. Double-declining balance method

b. Assume that the company decided to use the double-declining balance method and that the brewery equipment was sold at the end of December 2009, for $42,000. What was the gain or loss on the sale? On which financial statement would the gain or loss appear? What information does this accounting calculation provide for future decisions?

Reference no: EM13937789

Questions Cloud

Find amount of depreciation expense related to the computer : Calculate the amount of depreciation expense related to the computer system Hallmark will report on its income statement for the fiscal year ended June 30, 2009, for each scenario.

Recalculate your answer to part b assuming : Recalculate your answer to part b assuming Marie can lower the amount paid to instructors to $3,500 per class. Should Marie seriously pursue this option?

Write recursive function for binary search tree : Write a recursive member function level() for class template BST(Binary Search Tree) that determines the level in the BST at which a specified item is located. The root of the BST is at level 0, its children are at level 1, and so on.

How does the graph display this information : How it is possible for the price of the superstar's autographs to be higher than the price of the teammate's autographs even though the supply of superstar autographs is larger than the supply of teammate autographs? How does the graph display thi..

What was the gain or loss on the sale : What was the gain or loss on the sale? On which financial statement would the gain or loss appear? What information does this accounting calculation provide for future decisions?

Type of structure-frame structure system : There are different types of frame system which are having combination beams(which is called horizontal element) , column (which is called vertical element) and slab to hold the lateral and gravity, types of frame structure:-

Prepare a number of financial reports : Perdisco can then give you feedback that will help you identify and fix your mistakes as early as possible to prevent those mistakes being carried forward throughout the rest of your practice set.

Relationship between the theory and the behavior : Imagine you are creating a lesson on your specific theory. Provide an example of a situation that demonstrates the relationship between the theory and the behavior

Approach to systems development : What are the primary functional requirements for the system in the case study? What are the non-functional requirements for the system in the case study?

User Account

All Pages