On january 2 2011 kinnard hospital purchased a 104150
Course:- Accounting Basics
Reference No.:- EM13601532

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

On January 2, 2011, Kinnard Hospital purchased a $104,150 special radiology scanner from Faital Inc. The scanner has a useful life of 5 years and will have no disposal value at the end of its useful life. The straight-line method of depreciation is uded on this scanner. Annual operating costs with this scanner are $104,150.

Approxiamately one year later, the hospital is approached by Harmon Technology salesperson, Jane Black, who indicated that purchasing the scanner in 2011 from Fital Inc. was amistake. She points out that Harmon has scanner that will save Kinnaird Hospital $27,600 a year in operating over its 4 year useful life. She notes that the new scanner will cost $120,900 and has the same capabilities as the scanner purchased last year. The hospital agrees thar both scanners are of equal quality. The new scanner will have no disposal value. Black agrees to buy the old scanner from Kinnaird Hospital for $27,770.

If Kinnaird Hospital sells its old scanner on January 2,2012, compute the gain or loss on the sale.Answer with positive or negative enumber.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
You are the financial director of Pilgrim plc, a listed company. Your new group managing director, appointed from one of Pilgrim plc's overseas subsidiaries, is reviewing th
American Eagle borrows $90,000 cash by signing a four-year, 5% installment note. The note requires four equal total payments of accrued interest and principal on December 31
Jennifer Company reports the following amounts for 2010: Net income $135,000 Average stockholder's equity 500,000 Preferred dividends 35,000 Par value preferred stock 100,000
From the second case study, analyze how business planning can be an overarching and continuing development process that requires constant reevaluation of the company and its
The following data relate to notes receivable and interest for CGH Cable Co., a cable manufacturer and supplier. (All notes are dated as of the day they are received.)Apr. 1
Which of the following would be most likely to use process costing? A. Superior Auto Body & Repair B. Crammond Custom Cabinets C. Sunshine Soft Drinks D. AJackson & Taylor Tax
The following information is extracted from Beta Hospital financial statements. Compute Beta operating margin, total margin, debt service coverage, and times interestearned.
Draw Jim's budget line (throughout, please put coffee on the vertical axis)-Use a budget line-indifference curve map analysis to explain which pricing scheme Jim prefers.