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Charlotte Corporation purchased a machine that had an original cost of $150,000 and an estimated residual value of $15,000. The useful life was expected to
- Charlotte Corporation purchased a machine that had an original cost of $150,000 and an estimated residual value of $15,000. The useful life was expected to be 5 years and straight-line depreciation is used. At the end of 2020, the accumulated depreciation associated with the machine was $54,000. Charlotte disposed of the machine on July 1, 2021.
Required:
- Prepare the journal entry to record depreciation for 2021 up to the date of disposal.
- What is the accumulated depreciation after the entry you made in a.
- Prepare the journal entry assuming the machine was considered obsolete and was discarded.
- Prepare the journal entry assuming the machine was sold for $75,000.
- Prepare the journal entry assuming the machine was sold for $92,000.
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