Exercise 10-18 (Algo) Partial-year depreciation; disposal of plant asset LO P2

Rayya Company purchases a machine for $134,400 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare entries to record the partial years depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $67,200 cash. (2) The machine is sold for $56,448 cash.

	Income Before Depreciation	Depreciation Expense	Net (Pretax) Income
Year 1
Year 2
Year 3
Year 4
Year 5
Totals	$0	$0	$0

Exercise 10-18 (Algo) Partial-year depreciation; disposal of plant asset LO P2 Rayya Company purchases a machine for $134,400 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $67,200 cash. (2) The machine is sold for $56,448 cash. View transaction list 1 Record the depreciation expense as of July 1, 2025. > 2 Record the sale of the machinery for $67,200 cash. 3 Record the machine sold for $56,448 cash. Credit