On 1/4 / 20Χ0, in one of the two large machines used by company X, its gears broke, creating large internal damages. On 10/4 / 20Χ0 the company bought with cash a new machine costing 182,500 € so that the production could continue. On 1/5/20X0 the old machine was sold to a company abroad for 24,000 €. X spent € 3,000 to clean and move the machine before sending it by ship, while transportation by ship cost another € 1,000. The specific expenses were paid in cash. The relevant diary entries are requested knowing in addition that on 1/1 / 20X0 the data of X showed the following for the old machine: • Acquisition Cost € 90,000 Accumulated depreciation € 63,000 • Years of useful life: 20 years • Residual value: 0 € Depreciation method followed: Stable
(a) On 1/4 / 20Χ0, in one of the two large machines used by company X, its gears broke, creating large internal damages.
On 10/4 / 20Χ0 the company bought with cash a new machine costing 182,500 € so that the production could continue.
On 1/5/20X0 the old machine was sold to a company abroad for 24,000 €. X spent € 3,000 to clean and move the machine before sending it by ship, while transportation by ship cost another € 1,000. The specific expenses were paid in cash.
The relevant diary entries are requested knowing in addition that on 1/1 / 20X0 the data of X showed the following for the old machine:
• Acquisition Cost € 90,000
• Years of useful life: 20 years
• Residual value: 0 €
Depreciation method followed: Stable
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