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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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

explanation:

Answer from: Quest

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

hope it

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

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