provide answer A machine costing $171,600 was destroyed when it caught fire. At the date of the fire,the accumulated depreciation on the machine was $84,000. An insurance check for$203,800 was received based on the replacement cost of the machine. The entry torecord the insurance proceeds and the disposition of the machine will include a:a) gain on disposal of $116,200.b) credit to the Equipment account for $119,800.c) gain on disposal of $32,200.d) credit to the Accumulated Depreciation account for $84,000.On January 1, 2013 Williams Company purchased a copyright for $220,000. Thecopyright has a useful life of 4 years and a legal life of 12 years. The entry to record theacquisition of copyright will include a:a. debit to cash and credit to copyright for $220,000b. debit to copyright and credit to cash for $220,000c. debit amortization expense and credit to copyright for $55,000d. debit to goodwill and credit to cash for $55,000e. debit to cash and credit to purchases for $220,000

Answer to First Question Step 1: Introduction to Disposal of Assets:Assets are acquired resources…

Answered: A machine costing $171,600 was…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PB: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
A truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $55000. An insurance check for $129000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a O credit to the Truck account of $59000. ○ credit to the Accumulated Depreciation account for $55000. ○ Gain on Disposal of $70000. ○ Gain on Disposal of $15000. eTextbook and Media
A truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $55000. An insurance check for $129000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a credit to the Accumulated Depreciation account for $55000. credit to the Truck account of $59000. Gain on Disposal of $15000. Gain on Disposal of $70000.
The engine of a truck burned out and needed to be replaced two years after it was originally purchased. The original cost of the engine was $7,000 with a useful life of five years and salvage value of $1,000. The journal entry to record the disposal of the engine includes A credit to Cash for $7,000 A credit to Equipment (Truck) for $4,600 A credit to Equipment (Truck) for $7,000 A debit to Accumulated Depreciation for $1,000
The invoice price of a machine is $50,000. Various other costs relating to the acquisition and installation of the machine including transportation, electrical wiring, special base, and so on amount to $7,500. The machine has an estimated life of 10 years, with no salvage value at the end of that period. The owner of the business suggests that the incidental costs of $7,500 be charged to expense immediately for the following reasons. 1. If the machine should be sold, these costs cannot be recovered in the sales price. 2. The inclusion of the $7,500 in the machinery account on the books will not necessarily result in a closer approximation of the market price of this asset over the years, because of the possibility of changing demand and supply levels. 3. Charging the $7,500 to expense immediately will reduce federal income taxes. Instructions Discuss each of the points raised by the owner of the business.
Vaughn Company purchased a machine on July 1, 2021, for $32,200. Vaughn paid $230 in title fees and county property tax of $144 on the machine. In addition, Vaughn paid $575 shipping charges for delivery, and $546 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,450.Determine the depreciation base of Vaughn’s new machine. Vaughn uses straight-line depreciation. Depreciation base
Sokolsky Excavating purchased a used dump truck for $90,000 on January 1, 2018. Thecompany has depreciated the dump truck using the straight-line method over its estimated10-year life with a $6,000 residual value. Sokolsky sold the dump truck on January 1,2021, for $68,700. Total accumulated depreciation on the dump truck on the date of salewas $25,200. What gain or loss should be recorded on the sale?a. A gain of $3,900b. A loss of $3,900c. A loss of $21,300d. A gain of $21,300
Phoenix Co. acquired a large piece of specialized machinery used in its manufacturing process. The following costs were incurred in connection with the aquisition: Finder's fee $2,000 List price $230,000 Transportation fee $4,000 Speeding ticket during transportation $65 Installation fee $2,500 Cost to repair a door damaged during installation $1,200 Required: Which of the costs incurred by Phoenix Co. should be capitalized to the machinery account?
Kerr Company purchased a machine for P115,000 on January1, year 1, the company’s first day of operations. At the end of the year, the current cost of the machine was P125,000. The machine has no salvage value, a five-year life, and is depreciated by the straight-line method. For the year ended December 31,year 1, the amount of the current cost depreciation expense which would appear in supplementary current cost financial statements is P14,000 P23,000 P24,000 P25,000
Finney Company sold a machine for $15,000. The machine originally cost $35,000 in 2018 and $8,000 was spent on a major overhaul in 2021 (charged to the Equipment account). Accumulated Depreciation on the machine to the date of disposal was $28,000. Prepare the appropriate journal entry to record the disposition of the machine.
Bonita Company purchased a machine on July 1, 2021, for $30,520. Bonita paid $218 in title fees and county property tax of $136 on the machine. In addition, Bonita paid $545 shipping charges for delivery, and $518 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,270. Determine the depreciation base of Bonita's new machine. Bonita uses straight-line depreciation. Depreciation base 24

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