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The Sophie Company, which uses the ST-line depreciation method, purchased 3 machines on the first day of business in January 2017. Details of the purchase
The Sophie Company, which uses the ST-line depreciation method, purchased 3 machines on the first day of business in January 2017. Details of the purchase are as follows: During the first week of business in January 2022, Machine X was sold for $2,000. This prompted management to re-examine not only the useful life but also the salvage value of machines Y and Z. They decided that Machine Y had a remaining life of 3 years as of January 1, 2022, and that the salvage value of $2,400 was about right. Machine Z, however, had a remaining life of 4 years and there probably would be no salvage value. Required: Prepare journal entries to reflect all of the events and information related to the 3 machines during 2022, including depreciation expense: a. JEs for Machine X b. JEs for Machine Y c. JEs for Machine Z
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