Eta Co.experienced the following events during the current year:
a.Purchased land at a cost of $134,000 cash.
b.Invested in stock as a long-term,strategic position for $289,000 cash.
c.Sold an old warehouse with an historical cost of $350,000 and accumulated depreciation of $200,000 for $77,000.
d.Sold an old piece of factory equipment for $20,000 cash to a scrap metal dealer.The equipment cost $560,000 ten years ago,and $430,000 of depreciation had been recorded.
e.Sold old office furniture for $13,000.The furniture had cost $30,000 to buy seven years ago and $15,000 of depreciation has accumulated.
f.Sold land for $220,000 cash.The land was acquired at a cost of $170,000 five years ago.
Required:
1.Determine the net amount of cash generated by all of the transactions combined.
2.Determine the net gain or loss from each of the transactions.What is the total net gain or loss from all of the transactions combined?

Question

Quizplus · Accepted Answer

The Answer of Eta Co.experienced the following events during the current year:
a.Purchased land at a cost of $134,000 cash.
b.Invested in stock as a long-term,strategic position for $289,000 cash.
c.Sold an old warehouse with an historical cost of $350,000 and accumulated depreciation of $200,000 for $77,000.
d.Sold an old piece of factory equipment for $20,000 cash to a scrap metal dealer.The equipment cost $560,000 ten years ago,and $430,000 of depreciation had been recorded.
e.Sold old office furniture for $13,000.The furniture had cost $30,000 to buy seven years ago and $15,000 of depreciation has accumulated.
f.Sold land for $220,000 cash.The land was acquired at a cost of $170,000 five years ago.
Required:
1.Determine the net amount of cash generated by all of the transactions combined.
2.Determine the net gain or loss from each of the transactions.What is the total net gain or loss from all of the transactions combined?

Eta CoExperienced the Following Events During the Current Year