Question
Presented below are selected transactions for Milton Company for 2008. April 30Sold a machine for $28,000 that was purchased on January 1, 2005. The machine
Presented below are selected transactions for Milton Company for 2008.
April 30Sold a machine for $28,000 that was purchased on January 1, 2005. The machine cost $75,000, and had a useful life of 5 years with no salvage value.
Dec. 31Discarded a business automobile that was purchased on October 1, 2003. The car cost $32,000 and was depreciated on a 5-year useful life with a salvage value of $2,000.
Required:Journalize all entries required as a result of the above transactions. Milton Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2007.
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