E6-45A. Account for disposal of an asset. . Paper Printing Company disposed of a copy machine after using it for two years. The copy machine originally cost $65,000 and had associated accumulated depreciation of $32,500. Calculate the gain or loss on the disposal of the copy machine for each of the following situations:
1.The company sold the copy machine to a church for $27,500.
2.The company sold the copy machine to a local bank for $33,000.
3.The company gave the copy machine to a hauling company in return for hauling it to the local dump. The copy machine was considered worthless.
E6-46A. Calculate gain or loss and cash flow. Big Peach Athletics sold assets with an original cost of $21,000 and accumulated depreciation of $11,500. If the cash proceeds from the sale were $10,250, what was the gain or loss on the sale? On which financial statement would that amount be shown? How much would be shown on the statement of cash flows and in which section?