Eta CoExperienced the Following Events During the Current Year

question 2

Essay

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?

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Definitions:

Auto Parts

Components and accessories used in the manufacture, repair, or enhancement of automobiles, including items such as brakes, engines, and body parts.

Team-based Financial Incentives

Compensation or bonuses given to teams based on their collective performance or achievements, aimed at increasing productivity and fostering collaboration.

Financial Incentives

Monetary rewards offered to individuals or groups to motivate performance or behavior changes.

Psychological Ownership

The feeling of possessiveness and attachment that a person develops for something they do not legally own.