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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:A machine that cost $24,000 with a book value of $18,000 was sold for $12,000. The journal entry to record this event would include a
a. Gain of $12,000
b. Loss of $12,000
c. Debit to Accumulated Depreciation for $6,000
d. Debit to Accumulated Depreciation for $18,000
e. Credit to Machine for $18,000
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- A 4 Estimated Residual: 5 Estimated Life in years: 6 Estimated Life in hours: 7 Actual Hours: 8 Year 1 Year 2 9 10 11 12 14 15 16 17 18 19 Year 3 Year 4 20 21 22 23 $ B 10,000 Year 1 2 Prepare the following Straight Line depreciation schedule by using the excel SLN FUNCTION (fx) to calculate the 13 Depreciation Expense for Years 1-4 in the Depreciation Expense column. Enter formulas or absolute cell references for the remaining cells. W|N 3 4 1200 4 360 270 350 220 с D SULLIVAN RANCH CORPORATION Depreciation Schedule-Straight Line Method End of year amounts Depreciation Expense E Accumulated Depreciation LL Book Value Farrow_forwardA company sold a machine that originally cost $250,000 for $120,000 when accumulated depreciation on the machine was $100,000. The gain or loss recorded on the sale of this machine is:arrow_forward
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