I need small explanations calculations E7-44 (Learning Objective 4: Determining
ID: 2599665 • Letter: I
Question
I need small explanations calculations
E7-44 (Learning Objective 4: Determining the sale price of property and equipment) Wilson Corporation reported the following for property and equipment (in millions, adapted) Year End 20X7 20X6 Property and equipment S24,073 $22,011 (13,306) (12,087) ..( During 20X7, Wilson paid $2,510 million for new property and equipment. Depreciation for the year totaled $1,546 mon. During 20X7, Wilson sold property and equipment for cash of $48 million. How much was Wilson's gain or loss on the sale of property and equipment during 20X7?Explanation / Answer
Loss on Sale of Property & Equipment is $73 Million Cost price of the property : Beg Balance 22,011 Add: Purchases 2,510 Less: Closing Balance -24,073 Cost price of the property sold 448 Accumulated Depreciation Beg Balance 12,087 Add: Depn during the year 1,546 Less: Closing Balance -13,306 Accumulated Depreciation of the property sold 327 Calculation of Gain/ Loss on sale of property Cost Price of the Property 448 Less: Accumulated Depreciation -327 Book Value of the property sold 121 Less: Sale Price of the property sold -48 Loss on sale of property 73