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On January 1, 2021, Grouper Company purchased on credit machinery costing $142,500 and incurred $4,945 in installation costs. The machinery has an estimated useful life
On January 1, 2021, Grouper Company purchased on credit machinery costing $142,500 and incurred $4,945 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $9,880. The company uses the straight-line method of depreciation. At the end of 2022, Grouper recorded depreciation and assessed the asset, determining a recoverable amount of $119,600. Grouper sold the equipment to Voilex Corporation on June 30, 2023, for $117,600. Prepare the necessary entries assuming Grouper has a December 31 year-end
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