91影视

Accumulated depreciation refers to thetotal amount of depreciation charged on the assetsfrom the acquisition date to the reporting date.

In the books of Hyde, Inc.鈥檚

Working notes:

Calculating gain on disposal of machinery

$\begin{array}{rcl}\mathit{G}\mathit{a}\mathit{i}\mathit{n}\mathbf{}\mathit{o}\mathit{n}\mathbf{}\mathit{d}\mathit{i}\mathit{s}\mathit{p}\mathit{o}\mathit{s}\mathit{a}\mathit{l}\mathbf{}\mathit{o}\mathit{f}\mathbf{}\mathit{m}\mathit{a}\mathit{c}\mathit{h}\mathit{i}\mathit{n}\mathit{e}\mathit{r}\mathit{y}& \mathbf{=}& \mathit{F}\mathit{a}\mathit{i}\mathit{r}\mathbf{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathbf{-}\left(Originalcost-Accumulateddepreciation\right)\\ & \mathbf{=}& \mathbf{\$}\mathbf{60}\mathbf{,}\mathbf{000}\mathbf{-}\left(\$96,000-\$40,000\right)\\ & \mathbf{=}& \mathbf{\$}\mathbf{4}\mathbf{,}\mathbf{000}\\ & & \end{array}$

In the books of Wiggins, Inc.鈥檚

Working notes:

Calculating gain on disposal of machinery

$\begin{array}{rcl}\mathit{G}\mathit{a}\mathit{i}\mathit{n}\mathbf{}\mathit{o}\mathit{n}\mathbf{}\mathit{d}\mathit{i}\mathit{s}\mathit{p}\mathit{o}\mathit{s}\mathit{a}\mathit{l}\mathbf{}\mathit{o}\mathit{f}\mathbf{}\mathit{m}\mathit{a}\mathit{c}\mathit{h}\mathit{i}\mathit{n}\mathit{e}\mathit{r}\mathit{y}& \mathbf{=}& \mathit{F}\mathit{a}\mathit{i}\mathit{r}\mathbf{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathbf{-}\left(Originalcost-Accumulateddepreciation\right)\\ & \mathbf{=}& \mathbf{\$}\mathbf{75}\mathbf{,}\mathbf{000}\mathbf{-}\left(\$110,000-\$47,000\right)\\ & \mathbf{=}& \mathbf{\$}\mathbf{12}\mathbf{,}\mathbf{000}\\ & & \end{array}$

In the books of Hyde, Inc.鈥檚

Working notes:

Computation of gain deferred

in the books of Wiggins, Inc.鈥檚

Working notes:

Computation of total gain

Calculation of gain recognized

$\begin{array}{rcl}\mathit{G}\mathit{a}\mathit{i}\mathit{n}\mathbf{}\mathit{r}\mathit{e}\mathit{c}\mathit{o}\mathit{g}\mathit{n}\mathit{i}\mathit{z}\mathit{e}\mathit{d}& \mathbf{=}& \frac{\mathbf{C}\mathbf{a}\mathbf{s}\mathbf{h}}{\mathbf{C}\mathbf{a}\mathbf{s}\mathbf{h}\mathbf{+}\mathbf{F}\mathbf{a}\mathbf{i}\mathbf{r}\mathbf{}\mathbf{v}\mathbf{a}\mathbf{l}\mathbf{u}\mathbf{e}}\mathbf{脳}\mathit{G}\mathit{a}\mathit{i}\mathit{n}\mathbf{}\mathit{d}\mathit{i}\mathit{s}\mathit{p}\mathit{o}\mathit{s}\mathit{a}\mathit{l}\\ & \mathbf{=}& \frac{\mathbf{\$}\mathbf{15}\mathbf{,}\mathbf{000}}{\mathbf{\$}\mathbf{15}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{60}\mathbf{,}\mathbf{000}}\mathbf{脳}\mathbf{\$}\mathbf{12}\mathbf{,}\mathbf{000}\\ & \mathbf{=}& \mathbf{\$}\mathbf{2}\mathbf{,}\mathbf{400}\\ & & \end{array}$

Calculating basics of machinery A

Note:Itexemplifies the relaxation of the no gain or loss rule for trades with low economic value. Although it is unusual for a business to be devoid of commercial substance when cash is received, profit can be derived based on a percentage of cash received at full fair value.