[monik12]

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
??

[pready]

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

[satvirgoyal]

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

[satvirgoyal]

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

[law007lu]

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)

[law007lu]

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.