Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on January 1, 2015, for $42,000. At acquisiti
on, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $5,000. At December 31, 2018, the truck had a book value of $12,400. Required: 1. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for:_______. a. $12,000 b. $9,000 2. How should the gain or loss on disposal be reported on the income statement? 3. Assume that Swann uses IFRS and sold the truck for $12,000. In addition, Swann had previously recorded a revaluation surplus related to this machine of $4,000. What journal entries are required to record the sale?
First, it is necessary to record the depreciation expenses for January, February, and March: Depreciation expense over the three months is calculated as ($42,000 - $5,000) x 3/60 = $1,850. As of April 1, the journal entries for the depreciation expense for January, February, and March shall reflect Dr Depreciation Expense 1,850 and Cr Accumulated Depreciation 1,850. Consequently, the book value of the truck becomes $12,400 - $1,850 = $10,550. 1) In the scenario where the truck sells for $12,000 on April 1, the entries will be: Dr Cash 12,000, Dr Accumulated Depreciation 31,450, Cr Gain from Sale 1,450, and Cr Truck 42,000. If it instead sells for $9,000, the entries will adjust to: Dr Cash 9,000, Dr Accumulated Depreciation 31,450, Dr Loss from Sale 1,550, and Cr Truck 42,000. 2) Any gain or loss from the truck's sale should be recorded on the income statement under gains or losses from asset sales. 3) If Swann adopts IFRS and there was a revaluation surplus recorded on the truck, upon selling it for $12,000 on April 1, the entries should show: Dr Cash 12,000, Dr Revaluation Surplus 4,000, Dr Loss from Sale 1,450, and Cr Truck 14,550.
The correct answer is B) Cultural pollution. Cultural pollution refers to the degradation of culture that occurs when an overwhelming amount of art, language, clothing, media, and products without real significance saturates society. It can often be experienced in earnest by those who are uncritical, as well as ironically appreciated by the educated and disillusioned.
The buyer has the option to pursue specific performance of the contract. In real estate transactions, to be able to take legal action for specific performance, the buyer must have the necessary funds (or mortgage) ready for closing. It’s challenging to claim damages due to the unwillingness of the seller to proceed with a house sale, as houses are unique; similar properties may vary greatly in value depending on their locations.
By pursuing specific performance, the non-breaching party requests that the other party fulfill their obligations under the contract.
If a business regularly deals with toxic substances, all staff interacting with these hazardous materials must <span>receive training on how to handle and dispose of them safely! This is of utmost importance.</span>
