Fleming's lumber mills sold two machines. The following information related to two machines    

 

Machine Cost #1 #2 $86,000 $50,000 Purchase Date 1/1/02 1/1/05 Useful Life 5 yrs. 10 yrs. Salvage Value $6,000 $5,000 Depreciation Method Straight-line Double-declining Requirements: (a) (b) Compute the depreciation expense of machine #1 on 2005 (2 points). compute the Accumulated depreciation of machine #1 on 12/31/2005 (2points) prepare a journal entry for the transaction of selling machine #1 (4points) (d) Compute the carrying value of machine #2 for 12/31/2006 (4 points). (c) Date Sold 12/31/05 7/1/06 Sales Price $20,000 $32,000