Question
a. A machine costing $36,000 has accumulated depreciation of $26,000 at date of disposal. Assume the machine sold for $10,200. 1) What is the book
a. A machine costing $36,000 has accumulated depreciation of $26,000 at date of disposal. Assume the machine sold for $10,200.
1) What is the book value of the machine? ________
2) What is the amount of the gain or loss? ________
3) Is it a gain or loss on disposal of machine? __________
b. A machine costing $36,000 has accumulated depreciation of $26,000 at date of disposal. Assume that the machine was sold for $9,400 cash. The cost and accumulated depreciation are $36,000 and $26,000 respectively.
1) What is the book value of the machine? _________
2) What is the amount of the gain or loss? ________
3) Is it a gain or loss on disposal of machine? ________
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