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JOURNALIZE PLEASE Machinery which cost $300,000 was acquired on October 1, 2020. Its estimated salvage value is $30,000 and its expected life is eight years.
JOURNALIZE PLEASE
- Machinery which cost $300,000 was acquired on October 1, 2020. Its estimated salvage value is $30,000 and its expected life is eight years. Record any necessary 2023 entries associated with this machine. The machine is depreciated using the double-declining balance method. On August 28, 2023, this machine has a fair value of $170,000 and is exchanged for similar machinery having a fair value of $150,000 and $20,000 cash is received. This exchange lacks commercial substance. The new equipment is depreciated using the double-declining balance method and has an eight year useful life.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
