The management of Zeta 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 machinery with an historical cost of $100,000 and accumulated depreciation of $66,000 for $24,000 cash.
b.Sold land with an historical cost of $40,000 for $88,000 cash.
c.Purchased new equipment for $55,000 cash.
d.Sold factory equipment with an historical cost of $120,000 and accumulated depreciation of $80,000 for $53,000 cash.
e.Sold an old office building with an historical cost of $400,000 and accumulated depreciation of $380,000 for $390,000 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 Zeta 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 machinery with an historical cost of $100,000 and accumulated depreciation of $66,000 for $24,000 cash.
b.Sold land with an historical cost of $40,000 for $88,000 cash.
c.Purchased new equipment for $55,000 cash.
d.Sold factory equipment with an historical cost of $120,000 and accumulated depreciation of $80,000 for $53,000 cash.
e.Sold an old office building with an historical cost of $400,000 and accumulated depreciation of $380,000 for $390,000 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 Zeta Co