On December 31, Strike Company has decided to trade-in one of its batting cages for another one that has a cost of $500,000. The seller of the batting cage is willing to allow a trade-in amount of $11,000. The initial cost of the old equipment was $215,000 with an accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What
is the amount of the gain or loss on this transaction?
A) Loss of $11,000
B) Gain of $11,000
C) Loss of $19,000
D) No loss or gain will be recorded.
C
You might also like to view...
Katsuro started a tax consulting business with his friend Carey. They have a small space in a strip mall and one administrative assistant. At which stage of the organizational life cycle is their business?
A. Birth stage B. Introduction stage C. Adolescent stage D. Youth stage E. Midlife stage
Which of the following is not an investing activity?
a. Purchase of investments for cash. b. Purchase of equipment for cash. c. Sale of merchandise for cash. d. Sale of land for cash.
Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use?
A) inclusive B) multitiered C) indirect D) direct E) selective
Job order cost cards for incomplete jobs make up the ending balance of the Finished Goods Inventory account
Indicate whether the statement is true or false