(1) JanJan Co. purchased machinery at the beginning of 20X1. The cost was $120,000, the estimated useful life was 10 years, and the salvage value was $16,000. Straight-line depreciation method was applied. On Jan. 2, 20X8, the machinery was sold for $32,000 cash. (3 points) (2) Guan-Hua Co. sold transportation equipment with a book value of $7,500 for $8,900 cash. The original cost of the transportation equipment was $50,000. (3 points) Prepare relevant entries for the disposals of the above assets. |