Question

On January 1, 2012, Oriole Company purchased for $786000, equipment having a useful life of ten years and an estimated salvage value of $48000. Oriole has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $160000. As a result of this sale, Oriole should recognize a gain of $160000. $38200. $0. $86200.

Name: on january 1 2012 oriole company purchased for 786000 equipment having a useful life of ten years and an estimated salvage value of 48000 oriole has recorded monthly depreciation of the equipment on t
Uploaded: 2022-04-27T18:47:12-08:00
Duration: 1 min 34 s
Channel: Manasvee Singh
Description: on january 1 2012 oriole company purchased for 786000 equipment having a useful life of ten years and an estimated salvage value of 48000 oriole has recorded monthly depreciation of the equipment on t

          On January 1, 2012, Oriole Company purchased for $786000, equipment having a useful life of ten years and an estimated salvage value of $48000. Oriole has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $160000. As a result of this sale, Oriole should recognize a gain of


$160000.
$38200.
$0.
$86200.

Added by Krystal R.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Manasvee Singh

04/27/2022

Step 1

Given: Cost of equipment = $786,000 Salvage value = $48,000 Useful life = 10 years Annual Depreciation = (Cost of equipment - Salvage value) / Useful life Annual Depreciation = ($786,000 - $48,000) / 10 Annual Depreciation = $738,000 / 10 Annual Depreciation = Show more…

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On January 1, 2012, Oriole Company purchased for $786000, equipment having a useful life of ten years and an estimated salvage value of $48000. Oriole has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $160000. As a result of this sale, Oriole should recognize a gain of $160000. $38200. $0. $86200.