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Question 21 (4 points) On January 1, 2021 Madison Co. purchased a machine for $600,000. The machine has a useful life of 5 years, and

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Question 21 (4 points) On January 1, 2021 Madison Co. purchased a machine for $600,000. The machine has a useful life of 5 years, and a residual value of $100,000. Madison Co. uses the straight-line method to account for its depreciation. On January 1, 2023 Madison Co. sells the machine. Assume Madison Co. sells the machine for $299,999 cash. Please provide the journal entry Madison will record in relation to the sale: Dr. Cash $299,999 Dr. Accumulated Depreciation $200,000 Dr. Gain 100,001 Cr. Machine $600,000 Dr. Cash $299,999 Dr. Accumulated Depreciation $200,000 Dr. Loss 100,001 Cr. Machine $600,000 Dr. Accumulated Depreciation $299,000 Cr. Machine $299,000 Dr. Cash $299,999 Cr. Machine $299,000 Question 22 (5 points) Wellington Inc., a calendar-year end company, buys PPE on 9/30/2021 for $800,000. The machine is estimated to have a residual value of $100,000 and a useful life of 14 years. Assuming Wellington, Inc. uses the straight-line method to estimate depreciation, how much depreciation expense will Willington, Inc. recognize in its 12/31/2021 financials due to this PPE? $16,667 $12,500 $25,000 $50,000 Question 23 (5 points) Coffee Corp. buys a new, industrial espresso machine on 1/1/2021 for $10,000. The machine has an estimated residual value of $1,000 and a useful life of 9 years. During 2024, it is determined that the machine will have a total useful life of 5 years (instead of 9) and no residual value (instead of $1,000). Coffee Corp. uses the straight-line method to estimate depreciation and has a calendar year-end. Coffee Corp. only closes its books once per year (annually). Provide the journal entry Coffee Corp. will record on 12/31/204 to recognize depreciation expense: Dr. Depreciation Expense $1,000 Cr. Accumulated Depreciation $0,500 Dr. Accumulated Depreciation $3,500 Cr. Depreciation Expense $3,500 Dr. Depreciation Expense $2,333 Cr. Accumulated Depreciation $2,333 Dr. Depreciation Expense $3,500 Cr. Accumulated Depreciation $3,500 Question 24 (2 points) Which of the following is NOT TRUE regarding ordinary repairs and maintenance? Ordinary repairs and maintenance are referred to in the book as revenue expenditures." Ordinary repairs and maintenance are expensed as incurred. Ordinary repairs and maintenance are considered capital expenditures. Ordinary repairs and maintenance benefit only the current period. Question 25 (2 points) Which of the following is NOT TRUE regarding extraordinary repairs? Extraordinary repairs are expensed as incurred. When journalizing extraordinary repairs accumulated depreciation is debited. Extraordinary repairs result in changes to future depreciation expense. Extraordinary repairs are considered capital expenditures

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