Posted: July 12th, 2016

# Calculate the gain or loss on the disposal of the car for each of the following independent situations?

The accounting records of Dolphin Company revealed the following information:

Total Manufacturing Costs….. \$530,000
Work-In-Process Inventory, Jan 1 ….. \$56,000
Work-In-Process Inventory, Dec 31 ….. \$78,000
Finished-Goods Inventory, Jan 1 ….. \$146,000
Finished-Goods Inventory, Dec 31 ….. \$123,000

Dolphin’s cost of goods sold is:
A. \$508,000.
B. \$529,000.
C. \$531,000.
D. \$553,000.
E. some other amount.

Food to Go Delivery Service disposed of one of their delivery cars after using the car for 2 years. The records of the company provide the following informatiom:

Delivery car cost ,000
Accumulated depreciation \$10,000

Calculate the gain or loss on the disposal of the car for each of the following independent situations:

A. Food to Go sold the car to another company for \$22,000

B. Food to go sold the car to another company for \$17,000

C. The car was stolen from the parking lot and no insurance was carried on it for theft.