Question
1uestion One: Depreciation and Disposal of machine Mitch Manufacturer purchased a new machine for $100,000 on July 1, 2013. It is estimated that the machine
1uestion One: Depreciation and Disposal of machine Mitch Manufacturer purchased a new machine for $100,000 on July 1, 2013. It is estimated that the machine could be used for 5 years, after which the salvage value would be $10,000 at the end of its useful life. (Compute the depreciation expense by fractional year) Instructions (A) Prepare a complete depreciation schedule by using the straight-line method of depreciation. (B) Prepare a complete depreciation schedule by using the double-declining-balance method of depreciation. (C) If Mitch sold the machine for $30,000 on December 31, 2016, after the depreciation adjusting entry, journalize the disposal transaction under both the straight-line method and double-declining-balance method. Explanations for journal entries are NOT required.
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