Question
Listed below is information for each of the three machines at Stark Enterprises. Adjustments are recorded yearly. Assume an October 31st year end. Useful Life
Listed below is information for each of the three machines at Stark Enterprises. Adjustments are recorded yearly. Assume an October 31st year end. Useful Life Machine Acquired Cost Residual Value Depreciation Method (in years) 1 February 1, 2017 86000 6000 10 Straight Line Double Diminishing 2 April 30, 2018 100000 10000 8 Balance 3 October 1, 2019 78000 6000 6 Units of Production For the units of production method, total machine hours are 24,000. Actual hours of use in the first 2 years were 500 hours in 2019 and 5,000 hours in 2020. Required: 1. Calculate the accumulated depreciation and carrying amount on each machine for October 31, 2020. Round the calculations and your answer to the nearest dollar. Place your answer in the table below: Accumulated Depreciation Carrying Amount Machine 1 Machine 2 Machine 3 2. Assume Machine 2 was sold on June 1, 2021 for $40,000. What is the gain/loss from this sale? Round the calculations and your answer to the nearest dollar. Use brackets to indicate a negative number. Do not write gain or loss in your response
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