Exercise 7-59 Disposal of Fixed Asset

Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine:

Cost (installed), 1/1/2014	$880,000
Residual value estimated on 1/1/2014	60,000
Estimated life as of 1/1/2014	10 years

The machine was sold for $225,000 cash. Pacifica uses the straight-line method of depreciation.

Required:

1. Prepare the journal entry to record depreciation expense for 2019.

2019 Dec. 31	Depreciation Expense	fill in the blank
	Accumulated Depreciation		fill in the blank

2. Compute accumulated depreciation at December 31, 2019.

=____________

3. Prepare the journal entry to record the sale of the machine. If no entry is required, leave the answer boxes blank.

2019 Dec. 31	Cash	fill in the blank	fill in the blank
	Accumulated Depreciation	fill in the blank	fill in the blank
	Loss on Disposal of Property, Plant, and Equipment	fill in the blank	fill in the blank
	Machine	fill in the blank	fill in the blank