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Smith & Jones Ltd Owns Equipment That Was Purchased for $56

Question 44

Multiple Choice

Smith & Jones Ltd owns equipment that was purchased for $56 000 and has accumulated depreciation of $14 000.The following market value information was gathered about the equipment
$\begin{array} { | l | l | } \hline \text { Equivalent machine } & \$ 55860 \\\hline \text { New machine } & \$ 70000 \\\hline\end{array}$
The equipment has a remaining useful life to the entity of 10 years.What are the appropriate journal entries to record the revaluation under the gross method and the net-amount method?

A)
$Smith & Jones Ltd owns equipment that was purchased for $56 000 and has accumulated depreciation of $14 000.The following market value information was gathered about the equipment \begin{array} { | l | l | } \hline \text { Equivalent machine } & \$ 55860 \\ \hline \text { New machine } & \$ 70000 \\ \hline \end{array} The equipment has a remaining useful life to the entity of 10 years.What are the appropriate journal entries to record the revaluation under the gross method and the net-amount method? A) B) C) D)$
B)
$Smith & Jones Ltd owns equipment that was purchased for $56 000 and has accumulated depreciation of $14 000.The following market value information was gathered about the equipment \begin{array} { | l | l | } \hline \text { Equivalent machine } & \$ 55860 \\ \hline \text { New machine } & \$ 70000 \\ \hline \end{array} The equipment has a remaining useful life to the entity of 10 years.What are the appropriate journal entries to record the revaluation under the gross method and the net-amount method? A) B) C) D)$
C)
$Smith & Jones Ltd owns equipment that was purchased for $56 000 and has accumulated depreciation of $14 000.The following market value information was gathered about the equipment \begin{array} { | l | l | } \hline \text { Equivalent machine } & \$ 55860 \\ \hline \text { New machine } & \$ 70000 \\ \hline \end{array} The equipment has a remaining useful life to the entity of 10 years.What are the appropriate journal entries to record the revaluation under the gross method and the net-amount method? A) B) C) D)$
D)
$Smith & Jones Ltd owns equipment that was purchased for $56 000 and has accumulated depreciation of $14 000.The following market value information was gathered about the equipment \begin{array} { | l | l | } \hline \text { Equivalent machine } & \$ 55860 \\ \hline \text { New machine } & \$ 70000 \\ \hline \end{array} The equipment has a remaining useful life to the entity of 10 years.What are the appropriate journal entries to record the revaluation under the gross method and the net-amount method? A) B) C) D)$

Smith & Jones Ltd Owns Equipment That Was Purchased for $56

Multiple Choice

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