Question $6$:

A$)$ Company XYZ Ltd sold the following two machines in $2022$:

Record all the journal entries to update depreciation and the sale of the two assets in $2022.$ The company has recorded depreciation on machines through $31$ December $2021.$

Table:

Date $/$ Accounts Debit Credit

Then briefly explain:

Which depreciation method would be preferred by a company that wants to reduce the income tax payable at the beginning of the asset life? Briefly explain.Question $6$:

A$)$ Company XYZ Ltd sold the following two machines in $2022$:

a$)$ Company XYZ Ltd sold the following two $m$ achines in $2022$:

Record all the journal entries to update depreciation and the sale of the two assets in

The company has recorded depreciation on machines through $31$ December

Table:

Then briefly explain:

Which depreciation method would be preferred by a company that wants to reduce the

income tax payable at the beginning of the asset life? Briefly explain.