The machine was originally purchased on January 1,2016 for $40,000.The machine was estimated to have a useful life of 5 years and no residual value.The company uses straight-line depreciation.On December 31,2017,the machine was sold for $25,000.
Required:
Part a.Determine the gain (loss)on disposal,if any.
Part a.Prepare the journal entry to record the sale.
Part b.Assuming that the company had used the double-declining balance method instead of the straight-line method,explain how this would this have affected the gain (or loss)on the sale.(Do not include any calculations.)

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The Answer of The machine was originally purchased on January 1,2016 for $40,000.The machine was estimated to have a useful life of 5 years and no residual value.The company uses straight-line depreciation.On December 31,2017,the machine was sold for $25,000.
Required:
Part a.Determine the gain (loss)on disposal,if any.
Part a.Prepare the journal entry to record the sale.
Part b.Assuming that the company had used the double-declining balance method instead of the straight-line method,explain how this would this have affected the gain (or loss)on the sale.(Do not include any calculations.)

The Machine Was Originally Purchased on January 1,2016 for $40,000