Presented below are selected transactions at Ingles Company for 2010. Jan. 1 Retired a piece of machinery that was purchased on January 1,2000. The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2007. The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2006. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Instructions Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2009.)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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E10-9
Presented below are selected transactions at Ingles Company for 2010.
1 Retired a piece of machinery that was purchased on January 1, 2000, The machine cost
$62,000 on that date. It had a useful life of 10 years with no salvage value.
June 30 Sold a computer that was purchased on January 1, 2007. The computer cost $40,000. It
had a useful life of 5 years with no salvage value. The computer was sold for $14,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2006. The truck cost
$39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value.
Jan.
Instructions
Journalize all entries required on the above dates, including entries to update depreciation,
where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume
depreciation is up to date as of December 31, 2009.)
Transcribed Image Text:E10-9 Presented below are selected transactions at Ingles Company for 2010. 1 Retired a piece of machinery that was purchased on January 1, 2000, The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2007. The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2006. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Jan. Instructions Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2009.)
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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