The foiowing information applies to the questions displayed below During the cur

Question

The foiowing information applies to the questions displayed below During the current year, Merkley Company disposed of three different awsets. On January 1 of the currernt 1 of the current year prior to their disposal the accounts reflected the following Onginal Cost Depreciation (straight line) 25,000(10 years) 36750 (6 year 8,776 (12 years) Residual Estmated Life Asset Machine A Machine 8 Machine C 33000 $3,000 12 years 4,000 8 years 53,000 75,300 6200 17 years The machines were disposed of in the following ways a Machine A Sold on January 1 for $7600 cash. b Machine B Sold on December 31 for $10.625, received cash. S2.300, and ‘ S8325 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C On January t this machine suffered reparabe damae from an accident On January 1o. a salvege company removed the machine at no cost.

Explanation / Answer

Machine A: 1 Cash 7600 Accumulated depreciation,Machine A 25000 Loss on disposal of machine 400         Equipment (Machine A) 33000 Machine B: 1 Depreciation expense 6125 =(53000-4000)/8      Accumulated depreciation,Machine B 6125 2 Cash 2300 Notes receivable 8325 Accumulated depreciation,Machine B 42875 =36750+6125         Equipment (Machine B) 53000        Gain on disposal of machine 500 Machine C: 1 Accumulated depreciation,Machine C 48776 Loss on disposal of machine 26524         Equipment (Machine C) 75300

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.