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107 a fixed asset with a cost of 30 000 and accumulated depreciation of 28 500 is so 4298742

 

 

107. A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? 
A. $2,000 loss
B. $1,500 loss
C. $3,500 gain
D. $2,000 gain

 

108. The Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700.  The old machinery originally cost $9,000 and had accumulated depreciation of $5,000.  In recording this transaction, Bacon Company should record  
A. the new machinery at $16,700
B. the new machinery at $12,700
C. a gain of $1,500
D. a loss of $1,500

 

109. 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

 

110. 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

 

111. 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 (assuming the exchange was considered to have commercial substance): 
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

 

112. 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

 

113. On December 31, Strike Company has decided to discard one of its batting cages.  The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000.  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. $215,000
B. Loss on Disposal of Asset Dr. $185,000
C. Equipment Cr. $215,000
D. Gain on Disposal of Asset Cr. $30,000

 

114. On December 31, Strike Company has decided to sell one of its batting cages.  The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000.  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

 

115. On December 31, Strike Company has decided to sell one of its batting cages.  The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000.  Depreciation has been taken up to the end of the year.  The company found a company that is willing to buy the equipment for $20,000.  What is the amount of the gain or loss on this transaction? 
A. Gain of $20,000
B. Loss of $10,000
C. No gain or loss
D. Cannot be determined

 

116. On December 31, Strike Company has decided to sell one of its batting cages.  The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000.  Depreciation has been taken up to the end of the year.  The company found a company that is willing to buy the equipment for $55,000.  What is the amount of the gain or loss on this transaction? 
A. Cannot be determined
B. No gain or loss
C. Gain of $25,000
D. Gain of $55,000

 

 

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