Business, 25.06.2020 03:01 susie1968

Garcia Co. owns equipment that cost $84,400, with accumulated depreciation of $44,600. Garcia sells the equipment for cash. Required:
Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for:

a. $52,700 cash
b. $39,800 cash
c. $34,700 cash.

Answers: 3

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Answers

Answer from: megansanders215

Accumulated depreciation 44600 Dr

Cash 52700 Dr

Equipment 84400 Cr

Gain on disposal 12900 Cr

Accumulated depreciation 44600 Dr

Cash 39800 Dr

Equipment 84400 Cr

Accumulated depreciation 44600 Dr

Cash 34700 Dr

Loss on disposal 5100 Dr

Equipment 84400 Cr

Explanation:

First we need to determine the net book value of the equipment at the time of sale. The net book value is the net value after deducting accumulated depreciation from the cost of the asset.

Net Book value = Cost - Accumulated depreciation

Net Book Value = 84400 - 44600 = $39800

If the asset is sold for more than its net book value, there is gain on disposal. If it is sold for exactly its net book value, there is no gain or no loss on disposal.If it is sold for less than its net book value, there is loss on disposal.

Gain on disposal = 52700 - 39800 = $12900

No gain or no loss as Net Book Value of the asset equals the amount of cash it is sold for.

Loss on disposal = 34700 - 39800 = - $5100

Answer from: Quest

answer; /// i believe the correct answers are (b) change in population and (e) future expectation of check first, good luck

Answer from: Quest

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation:

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Garcia Co. owns equipment that cost $84,400, with accumulated depreciation of $44,600. Garcia sells...