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Splish Ltd. owned several manufacturing facilities. On September 15 of the current year, Splish decided to sell one of its manufacturing buildings. The building had
Splish Ltd. owned several manufacturing facilities. On September 15 of the current year, Splish decided to sell one of its manufacturing buildings. The building had cost $6,325,000 when originally purchased 5 years ago and had been depreciated using the straight-line method with no residual value. Splish estimated that the building had a 25 -year life when purchased. (a) Your answer is partially correct. Prepare the journal entry to record the sale of the building on Splish's books, assuming 5 years of depreciation has already been recorded in the accounts to the date of disposal. The building was sold for $5,250,000 cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Windsor Manufacturing purchased a machine on January 1,2023 for use in its factory. Windsor paid $578,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $50,000. During its life, the machine was expected to produce 440,000 units. During 2023 , the machine produced 44,200 units, and produced 70,600 in 2024. The machine was subject to a 20\% CCA rate, and Windsor's year-end was December 31 . The machine is eligible for the Accelerated Investment Incentive. (a) Your answer is incorrect. Calculate the annual depreciation amount for 2023 and 2024 using the straight-line method
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