A machine with a useful life of 6 years and a residual value of $3,000 was purchased at the beginning of year 1 for $30,000.
(a). What was the book value of the equipment at the end of year 3 assuming the straight-line method of depreciation is used?
(b). Illustrate the effects on the accounts and financial statements of the depreciation from January 1 to April 1 of year 4.
(c). Illustrate the effects on the accounts and financial statements of the sale of the machine on April 1.
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Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
IFRS 3rd edition
1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085
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