Sale of Plant Asset Raine Company has a machine that originally cost $58.000. De

Question

Sale of Plant Asset Raine Company has a machine that originally cost $58.000. Depreciation has been rec a $5,000 estimated salvage value at the end of an expected ten-year life. After recording depreciation at the end of four years. Raine sells the machine. Prepare the journal entry to record the machine's sale for (Round to the nearest dollar;: a. $37,000 cash b$36,800 cash orded for four years using the straight-line method, with $28,000 cash General Journal Date Description Debit Credit Gain on Sale of Plant Assets To record sale of machine.

Explanation / Answer

Calculation of Accumulated depreciation

Cost of machine $   58,000 Less: salvage value $   (5,000) Depreciable value $   53,000 Life of the machine 10 years Depreciation per year ($53,000/10) $     5,300 Accumulated depreciation at 4th year ($5,300*4) $   21,200

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