a. neither a gain nor loss is recognized on this type of transaction.
b. a gain on sale of $2,000.
c. a gain on sale of $1,000.
d. a loss on sale of $2,000.
**ANSWER choices**d. a loss on sales of $2,000
Assets Cost $36,000
Dep 18 month $500X18 Month = 9000
Asset Net Value $36,000-9000 = $27,000
Sales amount 25,000
loss on sales =$25,000 - $27,000 = $ - 2,000
Tangible fixed assets with an infinite life such as land do not need to be depreciated.
Intangible assets are subject to devaluation not depreciation.
Intangible assets are those assets which are amortized as compared to tangible assets which are depreciated.
Tangible assets normally are long term capital assets, but could be short term. Some long term tangible assets can be depreciated while others can not. For example a building or piece of equipment is a tangible long term asset that can be depreciated for financial and tax purposes. Land is also a tangible asset, but can not be depreciated.
Tangible assets normally are long term capital assets, but could be short term. Some long term tangible assets can be depreciated while others can not. For example a building or piece of equipment is a tangible long term asset that can be depreciated for financial and tax purposes. Land is also a tangible asset, but can not be depreciated.
YES good luck
Intangible assets are amortized on balance sheet same as tangible assets are depreciated.
current assets are not depreciated because depreciation process is use to allocate long term asset cost to specific fiscal year in which it used if fixed assets also fully used in one fiscal year then there is no need of depreciation as well.
Furniture is depreciated as it is tangible assets while intangible assets are amortized.Debit depreciationCredit Furniture
Fully Depreciated Assets are reported on the Balance Sheet as always, with one extra account. Accumulated Depreciation. For Example if a company has a Truck that cost $25,000 and it has been fully depreciated, the entries for the Balance Sheet are Equipment- Truck $25,000 Less Accumulated Depreciation (*****) Fixed assets remain on the books until said asset is sold, salvaged, or destroyed.
Fixed assets and non-current assets are basically the same. Both are defined as assests that are utilized or depreciated by a company over the course of more than a year.
Under all of US GAAP, CDN GAAP and IFRS, idle assets should continue to be depreciated.