Dec. 31 2018 Dec. Recorded annual straight-line depreciation on the machinery Check Dec 31, 2018, 31 Due to new information obtained earlier in the year, the machine's estimated useful life was changed from six to four years, and the estimated salvage value was increased to $14,345. Re- corded annual straight-line depreciation on the machinery. Machinery $27.500 2019 Dec. 31, 2019. Dec. 31 Recorded annual straight-line depreciation on the machinery Sold the machine for $25,240 cash. Dr. Loss on Disposal of 31 Required Prepare journal entries to record these transactions and events. Problem 8-6B Disposal of plant assets C1 P1 P2 On January 1, Walker purchases a used machine for $150,000 and readies it for use the next day at a cost of $3,510. On January 4, it is mounted on a required operating platform costing $4.600, and it is further readied for operations. Management estimates $18,110 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its sixth year of use, the machine is disposed of the machine will be used for seven years and have an Required 1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred. 2. Prepare journal entries to record depreciation of the machine at December 31 of (a) its first year of Check operations and (b) the year of its disposal. 3. Prepare journal entries to record the machine's disposal under each of the following separate assump- $20,000 (3c) Dr. Loss from Fire, $13,110 tions: (a) it is sold for $28,000 cash; (b) it is sold for $52,000 cash; and (c) it is destroyed in a fire and the insurance company pays $25,000 cash to settle the loss claim. On February 19 of the current year, Quartzite Co. pays $5,400,000 for land estimated to contain 4 million tons of recoverable ore. It installs machinery costing $400,000 that has a 16-year life and no salvage value and is capable of mining the ore deposit in 12 years. The machinery is paid for on March 21, eleven days before mining operations begin. The company removes and sells 254,000 tons of ore during its first nine months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Problem 8-7B Natural resources P3