Double declining balance depreciation is used

Assignment Help Financial Accounting

Reference no: EM13750325

Looser Co. has a machine that cost $510,000 on March 20, 2011. This old machine had an estimated life of ten years and a salvage value of $30,000. On December 23, 2015, the old machine is exchanged for a new machine with a fair value of $342,000. The exchange lacked commercial substance. Looser also received $36,000 cash. Assume that the last fiscal period ended on December 31, 2014, and that double declining balance depreciation is used. Instructions: a. Show the calculation of the amount of gain or loss to be recognized by Looser Co. from the exchange. b. Prepare all entries that are necessary on December 23, 2015.

Reference no: EM13750325

Questions Cloud

Considering preparing a budget : Adler Company has always done some planning for the future, but the company has never prepared a formal budget. Now that the company is growing larger, it is considering preparing a budget.

How star and delta connected lighting loads : How Star and Delta Connected Lighting Loads ? and Why there is no fuse on the Neutral of the Mains supply?

Variable cost and sales : Calculate B.E.P. (breakeven point) in sales from the following Information: First case: Sales $ 100,000, Variable Cost $, 50,000, Profit $, 20,000

How to find the value of ceramic capacitors : How to Calculate the value of Ceramic / Non-Polarized Capacitors? and how to Find the value of Ceramic Capacitors?

Double declining balance depreciation is used : Looser Co. has a machine that cost $510,000 on March 20, 2011. This old machine had an estimated life of ten years and a salvage value of $30,000. On December 23, 2015, the old machine is exchanged for a new machine with a fair value of $342,000. The..

Force transduction a resistive strain gauge : Question # 1: (20min) Force TransductionA Resistive strain gauge (Resistance= 1Kohm; Gauge factor G=10) is used to measuremuscle force in the following experiment.1) Assuming the observed resistance change is 100 ohm, calculate the strain.2) The prob..

Determine the value of barrys gifts : Barry creates a trust with property valued at $7 million. Under the terms of the trust instrument, Michelle (age 48) receives a life estate, while Terry (age 24) receives the remainder interest. In the month the trust is created, the interest rate is..

An energy conservation option has a first cost : An energy conservation option has a first cost of $100,000, it requires $6,000 in maintenance and saves $12,000 per year. If 400 people are to occupy the building with an annual salary of $60,000 and the device decreases production by 5%, what is the..

Calculate the percent change in gross margin : Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells directly to large construction companies, often ..

User Account

All Pages