9) Describe how to account for a piece of factory equipment from the date of purchase to the end of its useful life.
10) Explain what gains and losses are, how they are calculated, and how they are reported on the financial statements.
11) A machine was purchased for $100,000 in 2011 and used for four years, during which $40,000 of depreciation accumulated. The machine was then sold for $50,000 cash. What is the gain or loss on this transaction? Assume depreciation is up to date at the time of the sale.
12) A machine was purchased for $100,000 in 2011 and used for four years, during which $40,000 of depreciation accumulated. The machine was then sold for $60,000 cash. What is the gain or loss on this transaction? Assume depreciation is up to date at the time of the sale.
13) A machine was purchased for $100,000 in 2011 and used for four years, during which $50,000 of depreciation accumulated. The machine was then sold for $60,000 cash. What is the gain or loss on this transaction? Assume depreciation is up to date at the time of the sale.