Onslow Co. purchases a used machine for $144,000 cash on January 2 and readies it for use the next day at a $6,000 cost. On January 3, it is installed on a required operating platform costing $1,200, and it is further readied for operations. The company predicts the machine will be used for six years and have a $17,280 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.

bus zql u,{ i Tr* 6 ur'vt rP g-L lo r7{,ou o\\ 7,g to\\ t, t 60\\ @ q 78ooo V*,o* z8 yoo e^8 ,@ ,e aoo 3E,o*o 4F# --d'--'F /{a,0@ ro,t OOO '** (6,t cto I ,^.,1a I # a*ri ^ bA {ott , of, anJ o*to" "* lTz,ooo ei -/{ 5.al,l a ge E.*l'n'f ' PI De yttr. ooo t ooo Orp,rciatlr Gd /68, b (A, tfrer( I L'fr + 3o"" '* ^ I , o**" {*7 zr oa Accun, T*f':: - F\\ach'qgtt' yts i^'ho'^ n Ztr19j3 De 1rct ' .tA,,ra,,tol nF t *'** E*?e 1:'l { -1( **zt+ *, *^u*, {-.-..s::kr-It':" L l{z'e*o -, kl(ro* Deyrc '' 14c" q:: Nel 6oP[ Valw { ft., on* # Y:' ,(, ?8,caa Problem 8-6A (20 minutes) 1. Jan. 2 Machinery........... Cash To record Jan. 3 178,000 178,000 machinery purchase. Machinery........... 2,840 2,840 Gash To record machinery cosfs. Jan. 3 Machinery........... Cash I ,160 1,{60 To record machinery cosfs. 2. a. First vear Dec. 31 Depreciation Expense-Machinery.. Accu m u lated Depreciation-Mach i nery........ To 28,000 28,000 record depreciation [($182,000 - $14,000y6]. b. Fifth vear Dec. 31 Depreciation Expense-Machinery.. Accum u lated Depreciation-Mach i nery........ To record year's depreciation. 28,000 28,000 3. Accumulated depreciation at the date of disposal Five years' depreciation (5 x $28,000)............... $140,000 Book value at the date of disposal Original total .............i......... $182,000 (140,000) Accum ulated depreciation Book value $ 42,000 cost a. So/d for $15,000 cash Dec.31 Cash 15,000 Loss on Sale of Machinery 27,000 Accum u lated Depreciation-Mach i nery ............ 140,000 Machinery........... b. Sotd for $50,000 cash Dec. 31 Gash Accumu lated Depreciation-Mach inery Machinery........... Gain on Sale of Machinery 182,000 50,000 140,000 182,000 8,000 c, Destroyed in fire and collected $30,000 cash from insurance co. Dec. 31 Cash 30,000 Accumulated Depreciation-Machinery 140,000 Loss from Fire....... 12,000 Machinery........... @2016 bv McGraw-Hill Education. This is anV manner. This document may not be cor 182,000 tor use. Not authorized for sale or distribution in or posted on a website, in whole or part. Fi nancial and Managerial Accou nting, 6th Edition