Yvon Co., which has a calendar year accounting period, purchased a new machine for $30,000 on April 1, 2013. At that time Yvon expected to use the machine for nine years and then sell it for $3,000. The machine was sold for $16,500 on September 30, 2018. Assume the use of straight-line amortization, no amortization in the year of acquisition, and a full year of amortization in the year of retirement. Calculate the gain to be recognized at the time of sale.

Question

Quizplus · Accepted Answer

The Answer of Yvon Co., which has a calendar year accounting period, purchased a new machine for $30,000 on April 1, 2013. At that time Yvon expected to use the machine for nine years and then sell it for $3,000. The machine was sold for $16,500 on September 30, 2018. Assume the use of straight-line amortization, no amortization in the year of acquisition, and a full year of amortization in the year of retirement. Calculate the gain to be recognized at the time of sale.

Yvon Co, Which Has a Calendar Year Accounting Period, Purchased a a New