Question
Rayya Co. purchases and installs a machine on January 1, 2015, at a total cost of $109,200. Straight-line depreciation is taken each year for four
Rayya Co. purchases and installs a machine on January 1, 2015, at a total cost of $109,200. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2019, during its fifth year of service. |
Prepare entries to record the partial years depreciation on July 1, 2019. (Round your intermediate calculations, and final answer to the nearest whole dollar.) |
Prepare entries to record the disposal under the following separate assumptions: |
1. | The machine is sold for $54,600 cash. |
2. | An insurance settlement of $45,864 is received due to the machines total destruction in a fire. |
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