Edward Company purchased a bulldozer on July1 , 2003.for $120,000, and estimated the useful life of the bulldozer to be 60,000 hours of use, and a salvage value of $30,000. In 2003, they used the bulldozer for 12,000 hours, and in 2004, it was used for 16,000 hours before it was destroyed by a fire. The proceeds from the insurance company were $80,000. The journal entry to record the disposal of the bulldozer will include a:
A) debit to loss on disposal of $7,000
B) credit to gain on disposal of $2,000
C) debit to loss on disposal of $2,000
D) debit to loss on disposal of $16,000
E) credit to gain on disposal of $16,000
Ans: B) credit to gain on disposal of $2,000
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S. Bouchard and Company hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: D0 = $0.85; P0 = $22.00; and g = 6.00% (constant). The CEO thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $40.00. By how much would the cost of common from retained earnings change if the stock price changes as the CEO expects?
A) -1.49% B) -1.66% C) -1.84% D) -2.03%
An LLC has the power to own property in its own name
Indicate whether the statement is true or false