Bennie Razor Company has decided to sell one of its old manufacturing machines on June 30, 2014.
The machine was purchased for €80,000 on January 1, 2010, and was depreciated on a straight-line basis for 10 years assuming no residual value.

1. If the machine was sold for €26,000, what was the amount of the gain or loss recorded at the time of the sale and show the journal entries?
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3.  If the machine was changed for €16,000 car, what was the amount of the gain or loss recorded at the time of the sale and show the journal entries?

Answer rating: 100% (QA)

To get the gain or loss recorded at the time of the sale we need to compare the selling price of the ... View the full answer