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On December 31,2022 , Sage Hill Inc. owns a machine with a carrying amount of $1,050,000. The original cost and accumulated depreciation for the machine
On December 31,2022 , Sage Hill Inc. owns a machine with a carrying amount of $1,050,000. The original cost and accumulated depreciation for the machine on this date are as follows: Depreciation is calculated at $60,000 per year on a straight-line basis. A set of independent situations follows. For each situation, prepare the journal entry for Sage Hill to record the transaction. Ensure that depreciation entries are recorded to update the machine's carrying amount before its disposal. Assume that Sage Hill uses IFRS for financial statement purposes. On July 31, 2023, the company donated the machine to the Dartmouth City Council. The machine's fair value at the time of the donation was estimated to be $1.5 million. (Credit occount titles are automatically indented when the omount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. List all debit entries before credit entries.)
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