Depreciation by different methods and sale of fixed assets. New machines were purchased by Nunez Co on January 1st for $114,000. The equiment was expected to have a useful life of 5 years and an estimated salvage value of 12,000.   A. Determine the annual depreciation expense for each of the 5 years under the straight line method.   B. The double declining method   2. Journalize the entry for the first year assuming the straightline method    3. Journalize the sale of the machine if it was sold at the end of the third year for 50,000. (Assuming the straightline method of depreciation was used.)

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Depreciation by different methods and sale of fixed assets. New machines were purchased by Nunez Co on January 1st for $114,000. The equiment was expected to have a useful life of 5 years and an estimated salvage value of 12,000.  

A. Determine the annual depreciation expense for each of the 5 years under the straight line method.  

B. The double declining method  

2. Journalize the entry for the first year assuming the straightline method   

3. Journalize the sale of the machine if it was sold at the end of the third year for 50,000. (Assuming the straightline method of depreciation was used.)

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