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Bro Industries Inc. schedule of depreciable assets at December 31, Year 3, is shown below Bro takes a full year's depreciation expense in the year
Bro Industries Inc. schedule of depreciable assets at December 31, Year 3, is shown below Bro takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of an asset's disposition. The estimated useful life of each depreciable asset is 5 years. Asset A B Cost $110,000 70,000 84,000 $264,000 Accumulated Acquisition Salvage Depreciation Date Value $ 40,000 Year 2 $10,000 12,000 Year 1 10,000 14,000 Year 1 14,000 $66,000 $34,000 Bro depreciates asset C and A by the straight-line method. On June 30, Year 4, they sold asset C for $30,000 cash. On July 30, Year 4, Bro throws Asset A away as it is no longer working and no buyer could be located for the asset. A. Present the journal entry for the sale of Asset C B. Present the journal entry for the disposal of Asset A C. How much would Asset A need to be sold for to break even, with no gain or loss
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