On April 30, 2013, Wilson Company sold a used piece of manufacturing equipment for $6,500. The equipment had been purchased on January 1, 2010 for $50,000. The equipment was estimated to have a useful life of 4 years, with a residual value of $2,000. The equipment had been depreciated using the straight-line method. Depreciation was last recorded for the year ended December 31, 2012.
a) Calculate the carrying amount of the asset on December 31, 2012.
b) Record the depreciation for 2013.
c) Calculate the gain or loss on disposal.
d) Record the sale of the equipment on Apr 30, 2013.

Question

On April 30, 2013, Wilson Company sold a used piece of manufacturing equipment for $6,500. The equipment had been purchased on January 1, 2010 for $50,000. The equipment was estimated to have a useful life of 4 years, with a residual value of $2,000. The equipment had been depreciated using the straight-line method. Depreciation was last recorded for the year ended December 31, 2012.
 a) Calculate the carrying amount of the asset on December 31, 2012.
 b) Record the depreciation for 2013.
 c) Calculate the gain or loss on disposal.
 d) Record the sale of the equipment on Apr 30, 2013.

Quizplus · Accepted Answer

The Answer of On April 30, 2013, Wilson Company sold a used piece of manufacturing equipment for $6,500. The equipment had been purchased on January 1, 2010 for $50,000. The equipment was estimated to have a useful life of 4 years, with a residual value of $2,000. The equipment had been depreciated using the straight-line method. Depreciation was last recorded for the year ended December 31, 2012.
 a) Calculate the carrying amount of the asset on December 31, 2012.
 b) Record the depreciation for 2013.
 c) Calculate the gain or loss on disposal.
 d) Record the sale of the equipment on Apr 30, 2013.

On April 30, 2013, Wilson Company Sold a Used Piece