Machine with a useful life of 5 years and a residual value of $6,000 was purchased on January 3, 2007, for $48,500. The machine was sold on January 5, 2012, for $13,000.
(a)What is the book value of the machine on January 5,2012 , assuming straight-line depreciation is used?
(b)Tliustrate the effects on the accounts and the finmcial statements of the sale of the machine on J wnury $ 5,2012 $.
(c)Illustrate the effects on the accounts and the finencial statements of the sale of the machine if it had been sold for $ \$ 18,000 $ instead

Question

Machine with a useful life of 5 years and a residual value of $6,000 was purchased on January 3, 2007, for $48,500. The machine was sold on January 5, 2012, for $13,000.
 (a)What is the book value of the machine on January 5,2012 , assuming straight-line depreciation is used?
(b)Tliustrate the effects on the accounts and the finmcial statements of the sale of the machine on J wnury $ 5,2012 $.
(c)Illustrate the effects on the accounts and the finencial statements of the sale of the machine if it had been sold for $ \$ 18,000 $ instead

Quizplus · Accepted Answer

The Answer of Machine with a useful life of 5 years and a residual value of $6,000 was purchased on January 3, 2007, for $48,500. The machine was sold on January 5, 2012, for $13,000.
 (a)What is the book value of the machine on January 5,2012 , assuming straight-line depreciation is used?
(b)Tliustrate the effects on the accounts and the finmcial statements of the sale of the machine on J wnury $ 5,2012 $.
(c)Illustrate the effects on the accounts and the finencial statements of the sale of the machine if it had been sold for $ \$ 18,000 $ instead

Machine with a Useful Life of 5 Years and a Residual