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.

Q: Plant Asset Disposal Auspelmyer Company bought a machine for $175,000 five years ago and was…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Q: Farmer Company purchased equipment on January 1, Year 1 for $106,000. The equipment is estimated to…

A: Initial straight-line depreciation = (Price - Salvage value) / Useful life = ($106,000 - $15,000) /…

Q: rmer Company purchased machine on January 1, Year 1 for $91,000. The machine is estimated to have a…

A: Under straight line method of depreciation, depreciation is based on depreciable cost and useful…

Q: On April 1, Cyclone Company purchases a trencher for $290,000. The machine is expected to last five…

A: A method of computing depreciation and amortization, or the process of expensing an asset over a…

Q: Required information [The following information applies to the questions displayed below.] On April…

A: Depreciation It is a method of accounting in which Shows the reduction in the cost of a tangible…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is…

A: Calculate the year 1 depreciation as follows: Year 1 depreciation = 2*(Book value of asset /5) Year…

Q: Martin Company purchases a machine at the beginning of the year at a cost of $63,000. The machine is…

A: Book value of the machine at the end of the estimated useful life is its salvage value.

Q: A machine purchased by the Hubalol Company originally cost $245,000. Delivery and installation…

A: Machinery, furniture, and building are the few assets whose value decreases over a period due to…

Q: Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and…

A: GAIN ON LOSS ON DISPOSAL OF ASSETS Gain or loss on disposal of assets is computed by deducting book…

Q: Computing Depreciation, asset book value and gain or loss on asset sale Palepu Company owns and…

A: a.Calculate the net book value of the van on the sale date.

Q: • Johns Company has three assets that are depreciated straight-line under one Group Depreciation…

A: Depreciation  = Total Cost - Salvage Value / Useful life

Q: Calcualte the correct net book value of the machince at the year-end date of 31 December 20x1

A: In order to calculate the Cost of the Machine the purchase of the machine, installation cost,…

Q: Shannon Company has a equipment that originally cost $68,000. Depreciation has been recorded for six…

A: Lets understand the basics.Journal entry is required to make to record event and transaction that…

Q: Equipment acquired on January 9, 20Y3, at a cost of $615,000, has an estimated useful life of 17…

A: Straight Line Depreciation Expense = (Cost - Residual Value)/ Useful Life Book Value = Cost -…

Q: Sale of Plant Asset Shannon Company has a equipment that originally cost $68,000. Depreciation has…

A: Under the straight line depreciation method, the depreciation is charged at the same amount for each…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $41,000. The machine is…

A: Accounting defines depreciation as the systematic reduction of a fixed asset's reported cost until…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $36,000. The machine is…

A: Answer)   Calculation of depreciation expense for the year 2 Depreciation for Year 2 = Book value at…

Q: Current Attempt in Progress Alvarado Company purchased a new machine for $400,000. It is estimated…

A: Two situations call for the application of the double-declining balance method:When an asset's use…

Q: Straight-Line Depreciation Method: Office Mart purchases a photocopier for $70,000. The photocopier…

A: Depreciation means the fall in the value of the asset by constant use of it. It represents how much…

Q: Depreciation Choices and Outcome. Mulligan Co. purchased a new machine on January 1. The following…

A: Depreciation is used to allocate cost of asset over the period of useful life of asset. There are…

Q: Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been…

A: Straight-line method: The depreciation method which assumes that the consumption of economic…

Q: Depreciation Methods On January 2, Alvarez Company purchased an electroplating machine to help…

A: Data given:Machine cost= $240,000 Useful life =6years or 700,000 cuttingsSalvage value=$24,400.

Q: Martin Company purchases a machine at the beginning of the year at a cost of $68,000. The machine is…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $31,000. The machine is…

A: Depreciation Expenses incurred on the fixed assets of the company. They are incurred due to use, the…

Q: Required information [The following information applies to the questions displayed below.] NewTech…

A: Depreciation: Depreciation is an accounting method for distributing a tangible or physical asset's…

Q: Ben Company has a used executive charter plane that originally cost $1,000,000. Straight-line…

A: This is a sum on accounting of depreciation and disposal of fixed asset. Generally while providing…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On April 1, Cyclone Company purchases a trencher for $320,000. The machine is expected to last five…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Mohr Company purchases a machine at the beginning of the year at a cost of $36,000. The machine is…

A: A tangible asset's cost can be spread out over the period of its useful life using the accounting…

Q: A company purchased a delivery van for $24,900 with a salvage value of $2,700 on October 1, Year 1.…

A: Depreciation :— It is the decrease in the value of asset due to continuos use of asset.    Straight…

Q: Farmer Company purchased machine on January 1, Year 1 for $51,000. The machine is estimated to have…

A:

Q: Raine Company has a machine that originally cost $170,000. Depreciation has been recorded for five…

A: Depreciation as per straight line method = (Cost - Salvage value) /useful life = ($170, 000 - $12,…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.