Sale of Plant Asset Raine Company has a machine that originally cost $72,000. Depreciation has been recorded for five years using the straight-line method, with a $9,000 estimated salvage value at the end of an expected nine-year life. After recording depreciation at the end of the five years, Raine sells the machine. the journal entry to record the machine’s sale for (Round to the nearest dollar): a. $54,000 cash b. $37,000 cash c. $35,000 cash   General Journal Date Description Debit Credit a. Answer Answer Answer   Accumulated Depreciation - Equipment Answer Answer   Answer Answer Answer   Gain on Sale of Plant Assets Answer Answer   To record sale of machine.     b. Cash Answer Answer   Answer Answer Answer   Answer Answer Answer   To record sale of machine.     c. Cash Answer Answer   Answer Answer Answer   Accumulated Depreciation - Equipment Answer Answer   Answer Answer Answer   To record sale of machine.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Sale of Plant Asset

Raine Company has a machine that originally cost $72,000. Depreciation has been recorded for five years using the straight-line method, with a $9,000 estimated salvage value at the end of an expected nine-year life. After recording depreciation at the end of the five years, Raine sells the machine. the journal entry to record the machine’s sale for (Round to the nearest dollar):

a. $54,000 cash
b. $37,000 cash
c. $35,000 cash

 

General Journal
Date Description Debit Credit
a. Answer Answer Answer
  Accumulated Depreciation - Equipment Answer Answer
  Answer Answer Answer
  Gain on Sale of Plant Assets Answer Answer
  To record sale of machine.    
b. Cash Answer Answer
  Answer Answer Answer
  Answer Answer Answer
  To record sale of machine.    
c. Cash Answer Answer
  Answer Answer Answer
  Accumulated Depreciation - Equipment Answer Answer
  Answer Answer Answer
  To record sale of machine.
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