Question Details

What should be the loss recognized from the sale of the machine 


1.	Peterson Company purchased machinery for $160,000 on January 1, 2007. Straight-line depreciation has been recorded based on a $10,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2011 at a gain of $3,000. How much cash did Peterson receive from the sale of the machinery?
a.	$23,000
b.	$27,000
c.	$33,000
d.	$43,000

	2.	Sutherland Company purchased machinery for $320,000 on January 1, 2007. Straight-line depreciation has been recorded based on a $20,000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2011 at a gain of $6,000. How much cash did Sutherland receive from the sale of the machinery?
a.	$46,000.
b.	$54,000.
c.	$66,000.
d.	$86,000.

	3.	Ecker Company purchased a new machine on May 1, 2002 for $176,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $8,000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2011, the machine was sold for $24,000. What should be the loss recognized from the sale of the machine ?
a.	$0.
b.	$3,600.
c.	$8,000.
d.	$11,600.

4.	On January 1, 2002, Mill Corporation purchased for $152,000, equipment having a useful life of ten years and an estimated salvage value of $8,000. Mill has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2010, the equipment was sold for $28,000. As a result of this sale, Mill should recognize a gain of
a.	$0.
b.	$5,600.
c.	$13,600.
d.	$28,000.



Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help