M8-17

Recording the Sale of PPE Assets (FSET) Gaver Company sold machinery that had originally cost $165,000 for $55,000 in cash. The machinery was three years old and had been depreciated using the double-declining-balance method assuming a ve-year useful life and a residual value of $11,000.

Using the nancial statement eects template, show how the sale of the machinery aects the balance sheet and income statement.