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realized gain and unrealized gain. On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life of 20 years and
realized gain and unrealized gain.
On January 1, 2019, ABC Company purchased equipment for $90,000. The equipment was assigned a life of 20 years and a $6,000 residual value. On January 1, 2023, ABC Company spent $53,000 to overhaul the equipment. This capital expenditure caused ABC Company to change the life of the equipment from 20 years to 28 years with a residual value at the end of the 28 years of $2,000. Assuming that ABC uses the straight-line depreciation method, calculate the book value of the equipment at December 31, 2024. Mason Company purchased a new machine on January 1, 2022 for $57,000. At the time of acquisition, the machine was estimated to have a service life of ten years and a residual value of $3,000. The company employs the double-declining balance depreciation method. The machine was sold on December 31, 2024 for $14,300 cash. Calculate the amount of the loss recorded on the sale. Do not enter your answer with a minus sign in front of the numberStep by Step Solution
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