Question :
14) A machine was purchased for $100,000 in 2011 and : 1253288
14) A machine was purchased for $100,000 in 2011 and used for four years, during which $60,000 of depreciation accumulated. The machine was then sold for $60,000 cash. What is the gain or loss on this transaction? Assume depreciation is up to date at the time of the sale.
15) A machine was purchased for $100,000 in 2011 and used for four years, during which $60,000 of depreciation accumulated. The machine was then sold for $50,000 cash. What is the gain or loss on this transaction? Assume depreciation is up to date at the time of the sale.
16) The management of Omega Co. has decided to sell some of its long-term assets in order to generate cash. The following events occurred during the current year.
a. Sold a truck with an historical cost of $20,000 and accumulated depreciation of $14,000 for $4,000 in cash
b. Sold land with an historical cost of $100,000 for $120,000 in cash
c. Purchased a new truck for $33,000 cash
d. Sold factory equipment with an historical cost of $90,000 and accumulated depreciation of $60,000 for $23,000
e. Sold an old office building with an historical cost of $500,000 and accumulated depreciation of $300,000 for $190,000 cash
Required:
1. Determine the net amount of cash generated by all of the transactions combined.
2. Determine the net gain or loss from each of the transactions. What is the total net gain or loss from all of the transactions combined?
17) The management of Zeta Co. has decided to sell some of its long-term assets in order to generate cash. The following events occurred during the current year:
a. Sold machinery with an historical cost of $100,000 and accumulated depreciation of $66,000 for $24,000 cash.
b. Sold land with an historical cost of $40,000 for $88,000 cash.
c. Purchased new equipment for $55,000 cash.
d. Sold factory equipment with an historical cost of $120,000 and accumulated depreciation of $80,000 for $53,000 cash.
e. Sold an old office building with an historical cost of $400,000 and accumulated depreciation of $380,000 for $390,000 cash.
Required:
1. Determine the net amount of cash generated by all of the transactions combined.
2. Determine the net gain or loss from each of the transactions. What is the total net gain or loss from all of the transactions combined?
18) Eta Co. experienced the following events during the current year:
a. Purchased land at a cost of $134,000 cash.
b. Invested in stock as a long-term, strategic position for $289,000 cash.
c. Sold an old warehouse with an historical cost of $350,000 and accumulated depreciation of $200,000 for $77,000.
d. Sold an old piece of factory equipment for $20,000 cash to a scrap metal dealer. The equipment cost $560,000 ten years ago, and $430,000 of depreciation had been recorded.
e. Sold old office furniture for $13,000. The furniture had cost $30,000 to buy seven years ago and $15,000 of depreciation has accumulated.
f. Sold land for $220,000 cash. The land was acquired at a cost of $170,000 five years ago.
Required:
1. Determine the net amount of cash generated by all of the transactions combined.
2. Determine the net gain or loss from each of the transactions. What is the total net gain or loss from all of the transactions combined?
