4. Rasmussen Inc., sold equipment (costing $100,000) for $25,000 cash. Accumulated depreciation at the time of sale amounted to $65,000. What is the result of this transaction (i.e., how much of a gain or loss, if any)?
4. Rasmussen Inc., sold equipment (costing $100,000) for $25,000 cash. Accumulated depreciation at the time of sale amounted to $65,000. What is the result of this transaction (i.e., how much of a gain or loss, if any)?
Related questions
The Capitals Company has provided you the following information pertaining to the year ending December 31, 2018:
| January 1, 2018 | December 31, 2018 | ||||||
| Equipment | $ | 575,000 | $ | 729,000 | |||
| Accumulated depreciation | $ | 165,000 | $ | 120,500 | |||
Equipment costing $25,000 was acquired in exchange for common stock.
Equipment with an original cost of $57,500 and a book value of $5,000 was scrapped.
Equipment was purchased in exchange for cash.
Equipment with a book value of $39,000 was sold resulting in a $14,000 gain. The accumulated depreciation at the time of the sale was $67,000.
Required:
Determine the cash paid for equipment purchases during 2018.
Determine the depreciation expense for 2018.
