Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine: Cost (installed), 1/1/2014 $880,000 Residual value estimated on 1/1/2014 60,000 Estimated life as of 1/1/2014 10 years The machine was sold for $225,000 cash. Pacifica uses the straight-line method of depreciation. Required: 1. Prepare the journal entry to record depreciation expense for 2019. 2019 Dec. 31 Depreciation Expense 82,000 Accumulated Depreciation 82,000 Feedback 2. Compute accumulated depreciation on December 31, 2019. $
Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine: Cost (installed), 1/1/2014 $880,000 Residual value estimated on 1/1/2014 60,000 Estimated life as of 1/1/2014 10 years The machine was sold for $225,000 cash. Pacifica uses the straight-line method of depreciation. Required: 1. Prepare the journal entry to record depreciation expense for 2019. 2019 Dec. 31 Depreciation Expense 82,000 Accumulated Depreciation 82,000 Feedback 2. Compute accumulated depreciation on December 31, 2019. $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Exercise 7-59
Disposal of Fixed Asset
Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine:
| Cost (installed), 1/1/2014 | $880,000 |
| Residual value estimated on 1/1/2014 | 60,000 |
| Estimated life as of 1/1/2014 | 10 years |
The machine was sold for $225,000 cash. Pacifica uses the straight-line method of
Required:
1. Prepare the
| 2019 Dec. 31 | Depreciation Expense | 82,000 | |
| 82,000 |
2. Compute accumulated depreciation on December 31, 2019.
$
How do I calculate accumulated depreciation?
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