On March $1,2022,$ Newt's All Things Weasels purchased an automatic weasel groomer, the Weaselmatic, for $$62,000$cash. Newt estimated that the machine would have a useful life of $5$ years and a resale or residual value of $$2,000.$

Instructions:

On two column paper, make two I accounts $($Machine and Accumulated Depreciation $-$ Machine$)$ at the top. I am not interested in one for Depreciation Expense at this point.

Create the joumal entry for the acquisition of the machine. Post to the $T$ accounts

Create the joumal entry to record depreciation expense on $12/31/22$ and $12/31/23.$ Post both to the $T$ accounts. NOTE: Show your calculations for depreciation expense.

What is the book value of the Weaselmatic at $\frac{12}{31}\frac{?}{23}?$ Show your calculation.

If Newt sold the Weaselmatic on January $1,2024$ for $$42,500,$ how much gain or loss would he record?