Question
Please show all calculations so I can better understand this 1. A machine was purchased for $360,000 on January 1, 2013. It has an estimated
Please show all calculations so I can better understand this
1. A machine was purchased for $360,000 on January 1, 2013. It has an estimated useful life of ten years and an estimated residual value of $28,000. Depreciation for 2014, using the double declining-balance method, is $_____________.
2. On January 3, 2014, a vehicle was purchased for $25,000. It has an estimated useful life of five years and a residual value of $1,900. It is expected to be driven 210,000 kilometers over its useful life. The asset was driven 30,000 kilometers in the second year. Depreciation for the second year, using the units-of-production method is $______________.
3. On January 2, 2012, a machine costing $144,000 was acquired. The machine had a residual value of $24,000, and an estimated useful life of five years. The company elected to depreciate the machine using the straight-line method. This asset is sold for $50,000 at the end of the second year of use. The gain or loss on the disposal is $___________. In addition, please prepare the journal entry required to record the sale of this asset.
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