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Prepare the journal entries for the disposal of plant assets in each of the separate transactions. Question 23 A. Brown Company purchased equipment in 2008
Prepare the journal entries for the disposal of plant assets in each of the separate transactions.
Question 23 A. Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2014, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2015, th e equipment was sold for $40,000. Debit Account Titles Ref. Credit Date B. Finney Company sold a machine for $15,000. The machine originally cost $35,000 in 2012 and $8,000 was spent on a major overhaul in 2015 (charged to the Equipment account). Accumulated Depreciation on the machine to the date of disposal was $28,000. Debit Account Titles Ref. Credit DateStep by Step Solution
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