A company had a bulldozer that was destroyed by fire. The bulldozer originally cost $170,000. The accumulated depreciation on it was $90,000. The proceeds from the insurance company were $155,000. The company should recognize

a.A loss of $75,000.

b.A loss of $80,000.

c.A gain of $80,000.

d.A gain of $75,000.

e.A gain of $155,000.

??



Blanket Corporation sold equipment for cash of $36,500. Accumulated depreciation on the sale date amounted to $30,000 and a loss of $1,800 was recognized on the sale. What was the original cost of the asset?


$1,800.

$30,000

$38,300.

$8,300.

$68,300.

??


A depreciable asset currently has a $30,000 book value. The company owning the asset uses straight-line depreciation. They paid $43,500 for this asset and consider it to have a $2,000 salvage value with a seven year useful life. How long has the company owned this asset?
Round only the final answer. Round your final answer to 1 decimal place.


7 years.

2.28 years.

2.53 years.

2.03 years.

Cannot be determined from the given information
??

Try to answer the questions first, then if you need help we will try to help you.

hi dear, your answer is for first one is
1) a gain of 75000
2) value 68300
3) 2.0 years

hi dear, your answer is for first one is
1) a gain of 75000
2) value 68300
3) 2.0 years

I agree with the above answers except for number 3
the answer is 2.28 years
the annual depreciation =s 5,928.57 divide that by 12 to get the monthly rate which =s 494.0475

Take the 30,000 away from the 43,500 gives you 13,500. Divide that by the monthly rate 13,500/494.0475 gives you 27.325307 divide that by 12 to give you the amount of years which ='s 2.277 Round this up by one decimal to 2.28 years. :O)

Oh and the question is wrong anyway. It staes you need to round up the answer to 1 decimal place but all the optional answers are to 2 decimal places. So impossible to answer.