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The property, plant, and equipment section of the Jasper Company s December 3 1 , 2 0 2 3 , balance sheet contained the following:
The property, plant, and equipment section of the Jasper Companys December balance sheet contained the following:
Property, plant, and equipment:
Land $
Building $
Less: Accumulated depreciation
Equipment
Less: Accumulated depreciation question mark question mark
Total property, plant, and equipment question mark
The land and building were purchased at the beginning of Straightline depreciation is used and a residual value of $ for the building is anticipated.
The equipment is comprised of the following three machines:
Machine Cost Date Acquired Residual Value Life in Years
$ $
The straightline method is used to determine depreciation on the equipment. On March Machine was sold for $ Early in the useful life of machine was revised to five years in total, and the residual value was revised to zero.
Required:
Calculate the accumulated depreciation on the equipment at December
Prepare the journal entry to record depreciation on machine up to the date of sale.
Calculate the gain or loss on the sale of machine
Prepare the journal entry for the sale of machine
Prepare the yearend journal entries to record depreciation on the building and remaining equipment.
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