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Please show the solution on computer and explain solution. Also, please show formulas used to calculate the solution. Comma A/S's financial year ends on December
Please show the solution on computer and explain solution. Also, please show formulas used to calculate the solution.
Comma A/S's financial year ends on December 31, 2018. Comma has three machines, which are to be sold in January 2019. All three machines have been in use in 2018. The following table summarizes information about the three machines. Some of the information is missing (?"). Machine 1 2014 $170,000 Machine 2 ? ? 6 years $8,000 $35,000 Year of purchase (purchased on Jan. 1) Purchase price Expected useful life Expected salvage value Annual depreciation Accumulated depreciation on Jan. 1, 2018 Carrying amount on Jan. 1, 2018 Machine 3 2015 $83,400 ? $6,000 5 years ? $32,000 ? ? ? ? $29,025 ? $78,000 All machines are depreciated under the straight-line method. The expected total sales price of all three machines together is $165,000; the total cost of sale, $70,000. What is (a) the total annual depreciation for 2018, and (b) the total expected gain/loss from sale of the machines? A. (a) $76,675; (b) -$2,700. B. (a) $67,000; (b) $95,000. C. (a) $297,025; (b) $85,200. D. (a) $78,000; (b) -$70,000. E. (a) $0; (b) $71,000Step by Step Solution
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