Calculate the gain or loss on the sale of the asset

Assignment Help Accounting Basics
Reference no: EM13137459

On November 4, 2009, Blue Company acquired an asset (27.5 year residential real property) for $200,000 for use in its business. In 2009 and 2010, respectively, Blue took $642 and $5,128 of cost recovery. These amounts were incorrect because Blue applied the wrong percentages (i.e. those for 30 years rather than 27.5 year). Blue should have taken $910 and $7,272 cost recovery in 2009 and 2010. On January 1, 2011, the asset was sold for $180,000. Calculate the gain or loss on the sale of the asset in 2011.

Reference no: EM13137459

Questions Cloud

Compute basic and diluted eps : Compute basic and diluted EPS for the year ended December 31, 2009.
Rule for optimal input usage : According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company.
What are the number of shares par value per share : The market price of Sandals common stock is $150 on June 30. What are the number of shares, par value per share, and market price per share immediately after the 3-for-1 stock split?
Define self-concept. : Define self-concept.  Explain how a positive self-concept will improve your communication.  Define self-esteem. Explain how a positive self-esteem affects your communication
Calculate the gain or loss on the sale of the asset : On November 4, 2009, Blue Company acquired an asset (27.5 year residential real property) for $200,000 for use in its business. In 2009 and 2010, respectively, Blue took $642 and $5,128 of cost recovery.
Explain complex loading bending and compression : Complex loading (bending and compression), A steel chimney is 28m high, 1.4m external diameter, and 20mm thick. It is rigidly fixed at the base and is acted upon by a horizontal wind pressure of intensity 1.
Why are comparisons among companies important : Describe supply-chain management and a just-in-time operating environment. Why are they important to achieving a favorable inventory turnover?
Determine the payback period for this investment : Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $250,000 and will yield the following expected cash flows.
Determine point estimate for mean number of weekly hours : Mean weekly computer usage time of 8.5 hours and that from prior studies, the population standard deviation is assumed to be σ = 3.6 hours. Based on this information, what would be the point estimate for μ?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find gain in the year the involuntary conversion occurred

on an involuntary conversion in which the taxpayer does not buy replacement property within the replacement period the gain on the involuntary conversion and any tax due must be reported.

  Balance sheet of raider corporation

Monte and Allie each own 50% of Raider Corporation, an S corporation. Both individuals actively participate in Raider's business. Explain how the use of the losses in Part a would change if instead Raider were a partnership and Monte and Allie wer..

  Audit of the clients financial statements

On April 3, 2001, the client asked the CPA to audit the client's financial statements for the year ended December 31, 2001. Is the CPA considered independent with respect to the audit of the client's December 31, 2001, financial statements?

  Journals and ledger processing transactions

How are journals and ledger used in processing transactions? If a manufacturing company were to maintain special journals for purchases, sales, cash receipts, and cash disbursements, describe five journal entries that an AIS might make directly to..

  Investments in internetworking solutions

Cisco Systems, Inc., is the world's leading supplier of internetworking solutions targeted at corporate enterprise intranets and the internet. Using the instructions below, access Ciscos 2011 Annual Report.

  Forecasting-weighted moving average

Using a weighted moving average with weights of 0.60, 0.30, and 0.10, find the July forecast. Using a simple three-month moving average, find the July forecast.

  Prepare the entry to record bad debts expense

Wilton, Inc. had net sales in 2012 of $1,400,000. At December 31, 2012, before adjusting entries, the balances in selected accounts were: Accounts Receivable $250,000 debit, and Allowance for Doubtful Accounts $2,400 credit. Wilton estimates that ..

  Which of the following would result in life insurance

Maggie is single and supports her 85-year-old parents who live in a home rented for them by Maggie and who have no income. What is Maggie's filing status and why?

  Canadian dollar appreciation

Given these exact figures above, the dollar value of Whitewater's "earnings before interest and taxes" would ____ if the Canadian dollar appreciates; the dollar value of Whitewater's cash flows would ____ if the Canadian dollar appreciates.

  What is suzys basis after the distribution

Suzy has been the sole shareholder of a calendar year S-Corporation since 1979. The S-Corporation has the following balances.

  Minimum amortization of pension loss

The average remaining service period of Shin's employees is 7.5 years. Compute Shin's minimum amortization of pension loss.

  Determining predetermined overhead-overhead applied

Snapper Corp. computes its predetermined overhead rate annually on the basis of direct-labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $240,000 and the total direct labor hours (dlh) would be 6..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd