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On January 1, 2015, Toshi Limited purchased a machine for $750,000. The machine was estimated to have a 20 year useful life with a residual
On January 1, 2015, Toshi Limited purchased a machine for $750,000. The machine was estimated to have a 20 year useful life with a residual value of $100,000. The company used the straight-line method to depreciate the machine.
On December 31, 2019, the company sold the equipment for $600,000 cash
Required
- Calculate the gain or loss on sale on the sale of the machine.
- Prepare the journal entry to recognize the sale of the machine.
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| DATE | ACCOUNT | DEBIT | CREDIT |
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