Please see the attached file.
23. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset?
21. Equipment with a cost of $80,000, an estimated residual value of $5,000, and an estimated life of 15 years was depreciated by the straight-line method for 5 years. Due to obsolescence, it was determined that the useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years is _______. (Points: 4)
Initial depreciation = (80000-5000)/15=5000
Net book value of equipment at the end of 5 years = 80000-25000=55000
Life remaining = 15-5-5=5 years
Depreciation for current and future years = 55000/5=11000
23. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? (Points: 4)
Answer: $1,000 gain
The book value of the asset is $2500, it is sold for $3500. Hence there is a gain of $1000.
24. On December 31, Reach It Batting Cages Company has decided to discard one of its batting cages. ...
Answers five conceptual questions on accounting. The concepts discussed are depreciation accounting, loss / gain on sale of fixed assets and calculating the cash flow from operations.