WITH COMPUTATION-SOLUTION 65. On December 31, 2019, an entity sold an equipment with an estimated remaining useful life of 10 years. At the same time, the entity leased back the equipment for 2 years. Sale price at above fair value 7,500,000 Fair value of equipment on date of sale 6,000,000 Carrying amount of equipment 5,000,000 What amount of gain should be reported in the income statement for 2019? a. 2,500,000 b. 1,500,000 c. 1,000,000 d. 1,750,000
WITH COMPUTATION-SOLUTION 65. On December 31, 2019, an entity sold an equipment with an estimated remaining useful life of 10 years. At the same time, the entity leased back the equipment for 2 years. Sale price at above fair value 7,500,000 Fair value of equipment on date of sale 6,000,000 Carrying amount of equipment 5,000,000 What amount of gain should be reported in the income statement for 2019? a. 2,500,000 b. 1,500,000 c. 1,000,000 d. 1,750,000
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 64P
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WITH COMPUTATION-SOLUTION
65. On December 31, 2019, an entity sold an equipment with an estimated remaining useful life of 10 years. At the same time, the entity leased back the equipment for 2 years.
Sale price at above fair value 7,500,000
Fair value of equipment on date of sale 6,000,000
Carrying amount of equipment 5,000,000
What amount of gain should be reported in the income statement for 2019?
a. 2,500,000
b. 1,500,000
c. 1,000,000
d. 1,750,000
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