ABC Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 36,000, $ 3,900 (5 years) $25,680 (4 years) Machine B 68,200, 4,500 (14 years), 50,050 (11 years) The machines were disposed of in the following ways: Machine A: Sold on January 1 for $10,800 cash. Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year.

ABC Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 36,000, $ 3,900 (5 years) $25,680 (4 years) Machine B 68,200, 4,500 (14 years), 50,050 (11 years) The machines were disposed of in the following ways: Machine A: Sold on January 1 for $10,800 cash. Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year.

Name: . ABC Company disposed of two different assets. On January 1, prior to
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Description: . ABC Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected thefollowing: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line)Machine A $ 36,000, $3,900 (5 years)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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