Answer:
$45,800
Explanation:
Coronado Industries
Cost of Equipment $762,00
Accumulated Depreciation
( $762,000 - 45,000 ) /10*9 years
=$717,000/10×9 years
=71,700×9 years
=$645,300
Therefore Dec 31,2012 book value of equipment will be:
= $762,000 - $645,300
= $116,700
Equipment sold $162,500
The gain to be recognize will be
= $162,500 - $116,700
= $45,800
1 January ,2012 to 31 December,2020 will give us 9 years
Answer:
$45,800
Explanation:
Given that: the cost of the equipment = $762000
We can determine the accumulated depreciation as follows:
Accumulated depreciation= ((cost of equipment - salvage value )/useful lifetime )×Depreciation from 2012 to 2020
[tex]\mathbf{Accumulated \ depreciation= \dfrac{762,000-45,000}{10}*9 years}[/tex]
[tex]\mathbf{Accumulated \ depreciation= \dfrac{717,000}{10}*9 years}[/tex]
[tex]\mathbf{Accumulated \ depreciation}=[/tex] $ 645,300
The Book value of equipment as on December 31,2020 = cost of equipment - accumulated depreciation
= $762,000 - $645,300
= $ 116,700
Also; the sale value = $162500
The gain to be recognize = $162,500 - $ 116,700 = $45,800
