A machine costing $75,000 is purchased on September 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include: A. A credit to gain on sale for $8,000.   B. A debit to loss on sale for $2,625.   C. A credit to accumulated depreciation for $59,375.   D. A debit to loss on sale for $3,042.   E. A credit to gain on sale for $4,979.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A machine costing $75,000 is purchased on September 1, Year 1. The machine is estimated to have a salvage value of $10,000 and an estimated useful life of 4 years. Double-declining-balance depreciation is used. If the machine is sold on December 31, Year 3 for $13,000, the journal entry to record the sale will include:

A. A credit to gain on sale for $8,000.
 
B. A debit to loss on sale for $2,625.
 
C. A credit to accumulated depreciation for $59,375.
 
D. A debit to loss on sale for $3,042.
 
E. A credit to gain on sale for $4,979.
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