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General Accounting Discussions: Depreciation and equipment sold accounting

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    • CommentAuthorbetoman25
    • CommentTimeSep 19th 2007 edited
     
    I am currently taking principles of accounting and I am a little confuse of how to solve the problem below. Can anyone please help me.

    Thank you

    Problem:
    Balances sheets of Criss Co. at March 312004 and 2003.

    Information:
    Equioment, less accumulated depreciation of $76,000 and $58,000 respectively.

    3/31/04
    Cost
    $104,000

    3/31/03
    Cost
    $98,000


    a. If the cost of the new equipment purchased during the year totaled $32,000, what was the cost of the equipment sold or scrapped?

    b.If the accumulated depreciation on equipment sold or scrapped totaled $5,000, what was the amount of depreciation expense for the year?

    c. If there was a gain of $1,000 from the sale of equipment sold or scrapped, how much cash was received in the sale transaction?
    Thankful People: ck1516
    • CommentAuthorabril
    • CommentTimeSep 27th 2007 edited
     
    i understand the questions and the problem but i cant understand how you present the information regarding the cost and depreciation of the equipment. send me a clear form of the infos on my email if you like so i can help you.
    • CommentAuthorveda
    • CommentTimeOct 25th 2007
     
    i wanted to know if depreciation is profit or loss? could you please help in answering this?

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