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No written work Amit Company was established on Jan 1st 2015. The following is information regarding the company's PP&E: Original cost Note Book value -
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Amit Company was established on Jan 1st 2015. The following is information regarding the company's PP&E: Original cost Note Book value - Dec 31st 2015 ??? Book value - Dec 31st 2016 $1,500,000 ??? Machine Structure Car ??? ??? $12,000,000 $200,000 b ??? ??? Additional data: a. The machine was acquired on the same day that the company was established and only on July 1 st 2015 it was in its intended usable condition and started working. The machine is depreciated using the Straight Line method, its useful life is 4 years and has no salvage value. b. The structure was acquired on the same day the company was established. The structure is depreciated using the Straight Line method, its useful life is 25 years, 1/3 of its cost is attributed to the land which is not depreciable and the rest attributed to the building. c. The car was acquired on the same day that the company was established. The car is depreciated using the Double Declining balance depreciation method, its useful life is 4 years and 30% out of its original cost is salvage value. Required: A. What are the car depreciation expenses for 2016? B. What is the net balance of the structure on Dec 31st, 2016? C. What was the original cost of the machine? D. On Jan 1st 2017 the company sold the building for $11,500,000 in cash. What is the journal entry recording the saleStep by Step Solution
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