On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksensold the machine for $18,000. Use MACRS Table.Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave noanswer blank. Enter zero if applicable.a. What are the amount and character of the gain or loss Dirksen will recognize on the sale?DescriptionTotal Gain or (Loss) RecognizedCharacter of Recognized Gain or (Loss):Ordinary Gain or (Loss)§1231 gain or (loss)$Amount0

The modified accelerated cost recovery system (MACRS) seems to be a depreciation scheme used within…

On August 1 of year O, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, sold the machine for $18,000. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Lea- answer blank. Enter zero if applicable. What are the amount and character of the gain or loss Dirksen will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) £1221 gain or lose) Amount

On August 1 of year O, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, sold the machine for $18,000. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Lea- answer blank. Enter zero if applicable. What are the amount and character of the gain or loss Dirksen will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) £1221 gain or lose) Amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following Information applies to the questions displayed below.] On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero If applicable. b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 Instead? Note: Round other Intermediate computations to the nearest whole dollar amount. Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) Amount
On August 1 of year 0, Dirksen purchased a machine for $26,250 to use in its business. On December 4 of year 0, Dirksen sold the machine for $22,250. Use MACRS Table. (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) a.) What are the amount and character of the gain or loss Dirksen will recognize on the sale? Description Amount Total Gain/(Loss) Recognized $(4,000) Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) b)b. What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss)
On August 1 of year 0, Dirksen purchased a machine for $23,750 to use in its business. On December 4 of year 0, Dirksen sold the machine for $21,500. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable. b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead?
Required Information [The following information applies to the questions displayed below.] On August 1 of year 0. Dirksen purchased a machine for $42,500 to use in its business. On December 4 of year 0, Dirksen sold the machine for $35,000. Use MACRS Table. (Loss amounts should be Indicated by a minus sign. Do not round percentages used for calculations. Round other Intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero If applicable.) b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale of the machine is sold on January 15 of year 1 Instead? Description Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) S Amount
On August 1 of year 0, Dirksen purchased a machine for $25,500 to use in its business. On December 4 of year 0, Dirksen sold the machine for $24,000. Use MACRS Table. (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) Problem 11-42 Part-a (Algo) a. What are the amount and character of the gain or loss Dirksen will recognize on the sale? b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead?
Required information. Problem 11-42 (LO 11-3, LO 11-4) (Static) [The following information applies to the questions displayed below.] On August 1 of year O, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answers blank. Enter zero if applicable. Problem 11-42 Part-a (Static) a. What are the amount and character of the gain or loss Dirksen will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) Amount
Novak Manufacturing has old equipment that cost $51,000. The equipment has accumulated depreciation of $27,900. Novak has decided to sell the equipment. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) What entry would Novak make to record the sale of the equipment for $26,000 cash? (b) What entry would Novak make to record the sale of the equipment for $15,000 cash?
Moore Furniture Inc. sells retail furniture to the public. Moore recently sold three pieces of property. Use the spreadsheet below to calculate the gain or loss on each of the following dispositions of property, plant, and equipment assets. Place your answer in the space provided. A loss should be indicated by a negative number (enter with a leading minus (-) sign). Note: To use a formula in the spreadsheet, it must be preceded by an equal sign (e.g., =B1+B2).
Jennie is unsure on how to record the following transactions in her book of account. (a) Depreciation charge for the year of RM3,500 relating to buildings. (b) An increase in the allowance for doubtful debt of RM350 at the year end. (C)RM700 is paid to Jonas Trading to transport goods from supplier's warehouse to the shop. State the correct double entry to record the following transactions.
3. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) b. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation? Total Gain/Loss Recognized? Ordinary Gain/Loss? 1231 Gain/Loss?
Required: Show all computations for each of the missing item. 1. Owner Pedro invested an initial capital of amounting P50,000 in order to put up his janitorial services company. During the first year of operations (2018), the company had a loss of P25,000. Because of this, Pedro invested additional capital amounting to P50,000 in 2019. In the second year (2019), the company had a net income of P100,000 and Pedro withdrew P10,000 for personal use. > Compute for the ending capital balance of Pedro for the year 2019. 2. The following are the capital balances of DoReMi Partnership as of December 31, 2018: • Domingo, Capital – P58,960 • Reyes, Capital - P63,200 • Miranda, Capital – P64,890 The partnership generated net income of P75,400 in 2019. According to the partnership contract, the profit and loss sharing ratios are as follows: Domingo (25%), Reyes (37.5%), and Miranda (37.5%). The following were transactions with the partners during the year: • Domingo made additional contribution of…
5. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000? Total Gain/Loss Recognized? Ordinary Gain/Loss? 1231 Gain/Loss?