Required information [The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Depreciation (straight line) $13,500 (6 years) 55,200 (8 years) 52,125 (12 years) Original Residual Estimated Asset Cost Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A Machine B 73,000 75,600 4,000 6,100 Machine C The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January1 for $7,100 cash. b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost.

Required information [The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Depreciation (straight line) $13,500 (6 years) 55,200 (8 years) 52,125 (12 years) Original Residual Estimated Asset Cost Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A Machine B 73,000 75,600 4,000 6,100 Machine C The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January1 for $7,100 cash. b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost.

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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