Q#1-A The Outpatient clinic of eastside Hospital acquired X ray equipment for 150,000 with an expected useful life of 5 year and a 15,000 expected residual value % method was used. The equipment was sold at the end of the fourth year for 87,000 cash

Required

1. Compute the gain or loss on the sale.

2. Pass the general entry of sales of Machine

3. Pass the general entry of sales of machine if company exchange this machine after 5 Year list price of new machine 100000 and trade in allowance is 35000

4. Pass the general entry of sales of machine if company sold this machine after one year RS 65000 use straight line method

Q# 1-B )ASF and Company acquired a Machine for 50,000 with an expected useful life of 5 year and a 5,000 expected residual value Prepare a tabular comparison of the annual depreciation and book value for each year under straight line , % method 20%