3. Lorraine Corp. awned an asset that cost $50,000. The company sold the asset on...
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3. Lorraine Corp. awned an asset that cost $50,000. The company sold the asset on January 1, Year 4 for $20,000. Accumulated depreciation on the day of the sale was $40,000. Based on this information answer the following questions: What is the gain/loss on the sale? a. b. Show the impact of the transaction on the horizontal equation: Assets Liabilities Stockholders' Rev/Gain Exp/Loss Net Income Cash Flow Equity 4. Bcemster Industries purchased equipment on January 1, Year 1 for $60,000. The equipment is estimated to have a 5 year life and salvage value of $10,000. The company uses the straight line method. At the beginning of Year 3, Beemster revises the expected life to 7 years, what is the new annual depreciation expense? a) At the beginning of Year 3, Beemster keeps the life the same, but changes the salvage value to $15,000. What is the new annual depreciation expense? b) S. Dale Company purchased a coal mine on Janua expected to be extracted from the mine. In Yeor 1, 13,000 tons are mined. What is the depletion expense for Year 1? ry 1, Year 1 for $4,000,000, 80,000 tons of coal are
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