Ask Question
7 April, 15:48

Orton corporation, which has a calendar year accounting period, purchased a new machine for $80,000 on april 1, 2013. at that time orton expected to use the machine for nine years and then sell it for $8,000. the machine was sold for $44,000 on sept. 30, 2018. assuming straight-line depreciation, no depreciation in the year of acquisition, and a full year of depreciation in the year of retirement, the gain to be recognized at the time of sale would be

+2
Answers (1)
  1. 7 April, 16:42
    0
    The answer in this question is $4,000. The solution to get the $4,000 answer is $80,000 - [ ($80,000 - $8,000) : 9 * 5] = $40,000 (BV)

    $44,000 - $40,000 = $4,000 (gain)

    We have a $4,000 gain to be recognized at the time of the sale.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Orton corporation, which has a calendar year accounting period, purchased a new machine for $80,000 on april 1, 2013. at that time orton ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers