(a) Payne Company purchased equipment in 2004 for $90,000 and estimated a $6,000 salvage value at the...
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Prepare the appropriate journal entries to remove the equipment from the books of Payne Company on March 31, 2011.
(b) Judson Company sold a machine for $15,000. The machine originally cost $35,000 in 2008 and $8,000 was spent on a major overhaul in 2011 (charged to Machine account). Accumulated Depreciation on the machine to the date of disposal was $28,000.
Prepare the appropriate journal entry to record the disposition of the machine.
(c) Donahue Company sold office equipment that had a book value of $6,000 for $8,000. The office equipment originally cost $20,000 and it is estimated that it would cost $25,000 to replace the office equipment.
Prepare the appropriate journal entry to record the disposition of the office equipment.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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