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Part 3 : Disposal of Depreciable Assets On January 1 , 2017 Madison Co. purchased a machine for $600 , 000 . The machine has
Part 3 : Disposal of Depreciable Assets On January 1 , 2017 Madison Co. purchased a machine for $600 , 000 . The machine has a useful life of years , and a residual ( salvage ) value of $100 , 000 . Madison Co. uses the straight - line method to account for its depreciation . On January 1 , 2019 Madison Co . sells the machine . Please provide the journal entries that Madison will record in relation to the sale under each of the different scenarios :" ( a ) Madison Co . receives $400 , 000 in cash for the machine on January 1 , 2019 . Write Journal Entry / Show Work Here :" ( b ) Madison Co . receives $407 , 812 in cash for the machine on January 1 , 2019 . Write Journal Entry / Show Work Here :" ( C ) Madison Co . receives $299 , 999 in cash for the machine on January 1 , 2019 . Write Journal Entry / Show Work Here :"
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