Ly Company disposed of two different assets. On January 1, prlor to disposal of the assets, the accounts reflected the following: Accumulated Estimated Depreciation (straight-line) $17,600 (4 years) 48,000 (12 years) Original Residual Value $2,000 3, 200 Asset Cost Life $24,e00 59, 200 Machine A 5 years 14 years Machine B The machines were disposed of In the followlng ways: a. Machine A: This machine was sold on January 1 for $5.750 cash. b. Machine B: On January 1., this machine suffered Irreparable damage from an accident and was removed Immediately by a salvage company at no cost. Required: 1. Prepare the Journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreclation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry Is required for a transaction/event, select "No Journal entry reguired" In the first account field.)
Ly Company disposed of two different assets. On January 1, prlor to disposal of the assets, the accounts reflected the following: Accumulated Estimated Depreciation (straight-line) $17,600 (4 years) 48,000 (12 years) Original Residual Value $2,000 3, 200 Asset Cost Life $24,e00 59, 200 Machine A 5 years 14 years Machine B The machines were disposed of In the followlng ways: a. Machine A: This machine was sold on January 1 for $5.750 cash. b. Machine B: On January 1., this machine suffered Irreparable damage from an accident and was removed Immediately by a salvage company at no cost. Required: 1. Prepare the Journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreclation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry Is required for a transaction/event, select "No Journal entry reguired" In the first account field.)
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 7BCRQ
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