West Inc. bought Machine No. 2 for $16,000 on Jan 1, 2016. It had a 4-year life with no residual value and was depreciated using straight-line. West revalues its machines at the end of each financial year. The appraised fair values of Machine No. 2 are shown below. West disposed of valueless Machine No. 2 on Jan 1, 2020.

Date Fair Value $ No credit for answers submitted without plausible calculations

Dec 31, 2016 10,500

Dec 31, 2017 9,000

Dec 31, 2018 4,500

Dec 31, 2019 0

Provide journal entries for each of following dates. [1 marks for each part]

Q7a. Dec 31, 2016 Journal entries Dr. Cr.

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Q7b. Dec 31, 2017 Journal entries Dr. Cr.

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Q7c. Dec 31, 2018 Journal entries Dr. Cr.

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Q7d. Jan 1, 2020 Journal entries Dr. Cr.

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