On January 1, 2004, Bentham Company sells office furniture for $60,000 cash. The office furniture orginally cost...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2004,Bentham Company sells office furniture for $60,000 cash. The officefurniture orginally cost $150,000 when purchased on January 1,1997. Depreciation is recorded by the straight-line method over 10years with a salvage value of $15,000. What gain or loss on saleshould be recorded on this asset in 2004?
$34,500 loss.
$75,000 loss.
$4,500 gain.
$19,500 gain.
Bruno Companypurchased equipment on January 1, 2009 at a total invoice cost of$280,000; additional costs of $5,000 for freight and $25,000 forinstallation were incurred. The equipment has an estimated salvagevalue of $10,000 and an estimated useful life of five years. Theamount of accumulated depreciation at December 31, 2010 if thestraight-line method of depreciation is used is:
$108,000.
$110,000.
$120,000.
$124,000.
Equipment with aninvoice cost of $20,000 was placed in service on January 3, 2009.Installation costs of $8,000 were added to Repairs Expense. Thesecost should have been added to the Equipment account. Depreciationfor 2009 was computed using the straight-line method, and anestimated useful life of five years, with no salvage valueexpected. The net income reported for 2009 was:
Understated $8,000.
Understated $6,400.
Overstated $1,600.
Overstated $6,400.
On January 1, 2004,Bentham Company sells office furniture for $60,000 cash. The officefurniture orginally cost $150,000 when purchased on January 1,1997. Depreciation is recorded by the straight-line method over 10years with a salvage value of $15,000. What gain or loss on saleshould be recorded on this asset in 2004?
$34,500 loss. | |
$75,000 loss. | |
$4,500 gain. | |
$19,500 gain. |
Bruno Companypurchased equipment on January 1, 2009 at a total invoice cost of$280,000; additional costs of $5,000 for freight and $25,000 forinstallation were incurred. The equipment has an estimated salvagevalue of $10,000 and an estimated useful life of five years. Theamount of accumulated depreciation at December 31, 2010 if thestraight-line method of depreciation is used is:
$108,000. | |
$110,000. | |
$120,000. | |
$124,000. |
Equipment with aninvoice cost of $20,000 was placed in service on January 3, 2009.Installation costs of $8,000 were added to Repairs Expense. Thesecost should have been added to the Equipment account. Depreciationfor 2009 was computed using the straight-line method, and anestimated useful life of five years, with no salvage valueexpected. The net income reported for 2009 was:
Understated $8,000. | |
Understated $6,400. | |
Overstated $1,600. | |
Overstated $6,400. |
Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.