On, April 1, 2020, S. Products Co. purchased new machinery for $450,000. The machinery has an estimated useful life of eight years and 15,000 salvage value. The company computed the depreciation by the double declining method in 31/03/2022 the company decided to exchange its machinery with new one, in that date the old machine fair market value estimated to$ 270,000. The company will pay $150,000 and the old machine to get the new one (no- commercial substances). The new machine will depreciate on sum-of-the-years'-digits method with estimated 13000 salvage value and four years estimated useful life. In 1/1/2024 the company decided to disposal the machine through donated to local association. The company financial is calendar year. Required: Journalize all entries required for the machine from 1//4/2020-1/1/2024
On, April 1, 2020, S. Products Co. purchased new machinery for $450,000. The machinery has an estimated useful life of eight years and 15,000 salvage value. The company computed the depreciation by the double declining method in 31/03/2022 the company decided to exchange its machinery with new one, in that date the old machine fair market value estimated to$ 270,000. The company will pay $150,000 and the old machine to get the new one (no- commercial substances). The new machine will depreciate on sum-of-the-years'-digits method with estimated 13000 salvage value and four years estimated useful life. In 1/1/2024 the company decided to disposal the machine through donated to local association. The company financial is calendar year. Required: Journalize all entries required for the machine from 1//4/2020-1/1/2024
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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