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Rhonda Company had machinery that had originally cost exist208,000. The machinery was six years old and had been depreciated using the straight-line method, over an
Rhonda Company had machinery that had originally cost exist208,000. The machinery was six years old and had been depreciated using the straight-line method, over an eight year useful life with a residual value of exist16,000. Answer each of the following independent questions: a. If the company sold the machinery for exist40,000, compute the amount of the gain or loss on the sale. b. If the company sold the machinery for exist75,000, record the sale using the following accounts. List the debit letter(s) first and indicate the entry amounts. A. Accumulated Depreciation B. Cash C. Gain on Sale D. Loss on Sale E. Machinery
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