The management of Omega Co.has decided to sell some of its long-term assets in order to generate cash.The following events occurred during the current year.
a.Sold a truck with an historical cost of $20,000 and accumulated depreciation of $14,000 for $4,000 in cash
b.Sold land with an historical cost of $100,000 for $120,000 in cash
c.Purchased a new truck for $33,000 cash
d.Sold factory equipment with an historical cost of $90,000 and accumulated depreciation of $60,000 for $23,000
e.Sold an old office building with an historical cost of $500,000 and accumulated depreciation of $300,000 for $190,000 cash
Required:
1.Determine the net amount of cash generated by all of the transactions combined.
2.Determine the net gain or loss from each of the transactions.What is the total net gain or loss from all of the transactions combined?

Question

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The Answer of The management of Omega Co.has decided to sell some of its long-term assets in order to generate cash.The following events occurred during the current year.
a.Sold a truck with an historical cost of $20,000 and accumulated depreciation of $14,000 for $4,000 in cash
b.Sold land with an historical cost of $100,000 for $120,000 in cash
c.Purchased a new truck for $33,000 cash
d.Sold factory equipment with an historical cost of $90,000 and accumulated depreciation of $60,000 for $23,000
e.Sold an old office building with an historical cost of $500,000 and accumulated depreciation of $300,000 for $190,000 cash
Required:
1.Determine the net amount of cash generated by all of the transactions combined.
2.Determine the net gain or loss from each of the transactions.What is the total net gain or loss from all of the transactions combined?

The Management of Omega Co