Question
ABC Corporation purchased a machine on January 1, 2022, for $80,000, with a useful life of 10 years and a residual value of $10,000. The
ABC Corporation purchased a machine on January 1, 2022, for $80,000, with a useful life of 10 years and a residual value of $10,000. The corporation uses the straight-line method to depreciate its machinery. On December 31, 2025, ABC Corporation decided to sell the machine. The selling price was $30,000. Show the entries for the following transactions:
- The purchase of the machine on January 1, 2022
- The depreciation expense for the year ended December 31, 2022
- The sale of the machine on December 31, 2025
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
