EXERCISE 10-10

(c)

Cash.............................................................................
Accumulated DepreciationEquipment..................
Loss on Disposal of Plant Assets.............................
Equipment............................................................

(d) Depreciation Expense

[($65,000 $5,000) 5 X 9/12]................................
Accumulated DepreciationEquipment...........
Cash.............................................................................
Accumulated DepreciationEquipment
($36,000 + $9,000)...................................................
Loss on Disposal of Plant Assets.............................
Equipment............................................................

11,000
36,000
18,000

9,000

65,000

9,000

11,000
45,000
9,000

65,000

EXERCISE 10-15
(b) Equipment (new).........................................................
Accumulated DepreciationEquipment (old)..........
Gain on Disposal of Plant Assets......................
Equipment (old)...................................................
Cash.....................................................................
Cost of old machine
Less: Accumulated depreciation
Book value
Fair value of old machine
Gain on disposal

$12,000
4,000
8,000
11,000
$3,000

Fair value of old machine

Cash paid
Cost of new machine

$ 11,000
3,000
$14,000

14,000
4,000

3,000
12,000
3,000

*EXERCISE 10-16
(a) Equipment (new).........................................................
Loss on Disposal of Plant Assets.............................
Accumulated DepreciationEquipment (old)..........
Equipment (old)...................................................
Cost of old truck
Less: Accumulated depreciation
Book value
Fair value of old truck
Loss on disposal

3,000
4,000
15,000

22,000

$22,000
15,000
7,000
3,000
$ 4,000

(b) Equipment (new).........................................................

Accumulated DepreciationEquipment (old)..........
Equipment (old)...................................................
Gain on Disposal of Plant Assets......................
Cost of old truck
Less: Accumulated depreciation
Book value
Fair value of old truck
Gain on disposal

$10,000
8,000
2,000
3,000
$ 1,000

Cost of new truck*

$ 3,000

3,000
8,000

10,000
1,000