Question :
111. When a company discards machinery that fully depreciated, this transaction : 1234167
111. When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry
A. debit Accumulated Depreciation; credit Machinery
B. debit Machinery; credit Accumulated Depreciation
C. debit Cash; credit Accumulated Depreciation
D. debit Depreciation Expense; credit Accumulated Depreciation
112. When a company sells machinery at a price equal to its book value, this transaction would be recorded with an entry that would include the following:
A. debit Cash and Accumulated Depreciation; credit Machinery
B. debit Machinery; credit Cash and Accumulated Depreciation
C. debit Cash and Machinery; credit Accumulated Depreciation
D. debit Cash and Depreciation Expense; credit Accumulated Depreciation
113. When a company exchanges machinery and receives a trade-in allowance greater than the book value, this transaction would be recorded with the following entry:
A. debit Machinery and Accumulated Depreciation; credit Machinery, Cash, and Gain on Disposal
B. debit Machinery and Accumulated Depreciation; credit Machinery and Cash
C. debit Cash and Machinery; credit Accumulated Depreciation
D. debit Cash and Machinery; credit Accumulated Depreciation and Machinery
114. When a company exchanges machinery and receives a trade-in allowance less than the book value, this transaction would be recorded with the following entry:
A. debit Machinery and Accumulated Depreciation; credit Machinery and Cash
B. debit Cash and Machinery; credit Accumulated Depreciation
C. debit Cash and Machinery; credit Accumulated Depreciation and Machinery
D. debit Machinery, Accumulated Depreciation, and Loss on Disposal; credit Machinery and Cash
115. On December 31, Reach It Batting Cages Company has decided to discard one of its batting cages. The initial cost of the equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal.
A. Accumulated Depreciation Dr. $225,000
B. Loss on Disposal of Asset $195,000
C. Equipment Cr. $225,000
D. Gain on Disposal of Asset $30,000
116. On December 31, Reach It Batting Cages Company has decided to sell one of its batting cages. The initial cost of the equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $30,000. What is the amount of the gain or loss on this transaction?
A. Gain of $30,000
B. Loss of $30,000
C. No gain or loss
D. Cannot be determined
117. On December 31, Reach It Batting Cages Company has decided to sell one of its batting cages. The initial cost of the equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $10,000. What is the amount of the gain or loss on this transaction?
A. Gain of $10,000
B. Loss of $20,000
C. No gain or loss
D. Cannot be determined
118. On December 31, Reach It Batting Cages Company has decided to sell one of its batting cages. The initial cost of the equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $70,000. What is the amount of the gain or loss on this transaction?
A. Cannot be determined
B. No gain or loss
C. Gain of $40,000
D. Gain of $70,000
119. On December 31, Reach It Batting Cages Company has decided to trade-in one of its batting cages for another one that has a cost of $500,000. The seller of the batting cage is willing to allow a trade-in amount of $40,000. The initial cost of the old equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction?
A. The gain will not be recognized and will be added to the price of the old equipment.
B. The gain will not be recognized and will be added to the price of the new equipment
C. The gain will not be recognized and will be subtracted from the price of the old equipment
D. The gain will not be recognized and will be subtracted from the price of the new equipment.
120. On December 31, Reach It Batting Cages Company has decided to trade-in one of its batting cages for another one that has a cost of $500,000. The seller of the batting cage is willing to allow a trade-in amount of $12,000. The initial cost of the old equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction?
A. Loss of $12,000
B. Gain of $12,000
C. Loss of $18,000
D. No loss or gain will be recorded.