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.
Why is cash flow considered the most honest statement? restart the growth cycle? categories of ratios?
Why is cash flow considered the most honest statement? Tell in your own words how a cash flow statement is created? Using Accounts Payable as an example, show how this account going up or down from year to year can affect cash flow.
DQ 2 Set 1 - If you were looking at an existing small business to acquire, once you received this small business's current and past year's financial statements, what would be your next few steps?
DQ 2, Set 2 - How do you continue or restart the growth cycle when your small business has already reached a plateau and began to decline? Provide an example of a business that was on the decline and made an adjustment to continue growth. What caused the company to go into decline in the first place and what adjustment did that company make to avoid further decline?
List the major categories of ratios (you can find these in texts or via a internet search), then, using your own company, or a company for which you have worked in the past, pick what you believe is the one most important ratio (for said company) from each category. State the reason why these ratios are important for your chosen company.View Full Posting Details