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pplease her with this it has multiple parts On March 1, 2017, Mickey Company purchased machinery for $500,000. Mickey estimates that the machinery has a
pplease her with this it has multiple parts On March 1, 2017, Mickey Company purchased machinery for $500,000. Mickey estimates that the machinery has a 10-year useful life and a $30,000 salvage value, Mickey uses the sum-of-years depreciation method and recorded depreciation normally during 2017 and 2018 On December 31, 2019, the machinery was sold for $240,000. 2017 Depreciation Expense: $71,212 (March 1, 2017 - December 31, 2017) 2018 Depreciation Expense: $78,333 (January 1, 2018 - December 31, 2018) 2019 Depreciation Expense: $69,788 (January 1, 2019 - December 31, 2019) a. Based on this information, calculate net book value of the equipment on Dec 31, 2019 at the time of the sale $150,000 $219,333 $240,000 $280,667 b. Based on this information, what is the gain or loss on the sale of the equipment on Dec 31, 2019? Loss of $40,667 CLoss of $260,000 Gain of $260,000 Gain of $40,667 c. Based on this information, prepare Mickey's journal entry to record the sale on Dec 31, 2019: DR. Cash DR A/D DR. Loss on Sale CR. Machine $240,000 $219,333 $40,667 5500,000 DR. Cash DR. AD CR. Gain on Sale CR, Machine $240,000 $260,000 $40,667 $459,333 DR. Cash $240,000 DR. AND $40,667 DR. Loss on Sale $219,333 CR. Machine $500,000 DR. Cash DR. A/D CR. Gain on Sale CR Machine $240,000 $260,000 $219,333 $280,667
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