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New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $670,000. The ovens
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $670,000. The ovens originally cost $877,000, had an estimated service life of 10 years, and an estimated residual value of $57,000. New Morning Bakery uses the straight-line depreciation method for all equipment. 2. Calculate the book value of the ovens at the end of the second year. Book value 4. Record the sale of the ovens at the end of the second year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet -- Record the sale of ovens. Note: Enter debits before credits Transaction Debit Credit 1 General Journal Cash Accounts payable 4 43,000 Record entry Clear entry View general journal
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