Seligman, Inc. has a computer that originally cost $15,400. Depreciation has been recorded for five years using the straight-line method, with a $1,400 estimated salvage value at the end of an expected seven-year life. After recording depreciation at the end of the fifth year, Seligman disposes of the computer.
Required:
For each of the following independent disposals of the computer, place the dollar amount of the recognized gain or loss in the appropriate column. If there is no recognized gain or loss, place a zero in each column.

Question

Seligman, Inc. has a computer that originally cost $15,400. Depreciation has been recorded for five years using the straight-line method, with a $1,400 estimated salvage value at the end of an expected seven-year life. After recording depreciation at the end of the fifth year, Seligman disposes of the computer. 
Required:
For each of the following independent disposals of the computer, place the dollar amount of the recognized gain or loss in the appropriate column. If there is no recognized gain or loss, place a zero in each column.

Quizplus · Accepted Answer

The Answer of Seligman, Inc. has a computer that originally cost $15,400. Depreciation has been recorded for five years using the straight-line method, with a $1,400 estimated salvage value at the end of an expected seven-year life. After recording depreciation at the end of the fifth year, Seligman disposes of the computer. 
Required:
For each of the following independent disposals of the computer, place the dollar amount of the recognized gain or loss in the appropriate column. If there is no recognized gain or loss, place a zero in each column.