Question
On January 1, 2018, Manzanita Manufacturing purchased a machine for $345,000 with an expected life of 5 years and a residual value of $37,500. In
On January 1, 2018, Manzanita Manufacturing purchased a machine for $345,000 with an expected life of 5 years and a residual value of $37,500. In addition, the company paid delivery costs of $3,000 and $12,000 to have the machine installed. Manzanita uses the double-declining-balance method of depreciation. If the company sells the machine at the end of 5 years and receives $28,750, the journal entry to record the sale will include which of the following?
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Credit to Machine for $345,000.
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Debit to Loss on Sale for $8,750.
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Debit to Accumulated Depreciation for $345,000.
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Credit to Residual Value for $30,000.
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Auditing and Assurance Services An Applied Approach
Authors: Iris Stuart
1st edition
73404004, 978-0073404004
