# Answered Essay: 4. On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for \$950,000 and \$425,000, respectively. The book value of the patent and equipment on the date of sale were \$220,000 and \$520,000 (cost of \$770,000 less accumulated depreciation of \$250,000), respectively.

4. On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for \$950,000 and \$425,000, respectively. The book value of the patent and equipment on the date of sale were \$220,000 and \$520,000 (cost of \$770,000 less accumulated depreciation of \$250,000), respectively.

Prepare the journal entries to record the sales of the patent and equipment(If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

5. Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2016 totaled \$515,000. The estimated residual value of the equipment was \$49,000 and the group depreciation rate was determined to be 18%.

What is the annual depreciation for the group? If equipment that cost \$51,000 is sold in 2017 for \$44,000, what amount of gain or loss will the company recognize for the sale? (Enter your answers in whole dollars.)

 Annual depreciation ? ? ?

 Answer 4 Journal entry to record sale of the plant and equipment Date Account Titles Debit Credit July 15,2018 Cash \$950,000 Patent \$220,000 Gain on sale of patent \$730,000 July 15,2018 Cash \$425,000 Loss on sale of equipment \$95,000 Equipment \$520,000 Answer 3 Calculation of annual depreciation using group method Annual Depreciation = (cost of equipment – residual value)*18% Annual Depreciation = (\$515000 – \$49000)*18% = \$83,880 Calculation of Gain/loss on sale of equipment Book value of Equipment costing \$51000 in 2017 = \$51000 – (\$51000*18%) = \$41,820 Gain on sale of equipment = Sale value of equipment – Book value of equipment as on 2017 Gain on sale of equipment = \$44000 – \$41820 = \$2,180
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Follow these simple steps to get your paper done

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

## Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.