Gaver Company sold machinery that had originally cost $165,000 for $55,000 in cash. The ma- chinery...

 

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Gaver Company sold machinery that had originally cost $165,000 for $55,000 in cash. The ma- chinery was three years old and had been depreciated using the double-declining-balance method assuming a five-year useful life and a residual value of $11,000. Using the financial statement effects template, show how the sale of the machinery affects the balance sheet and income statement. Gaver Company sold machinery that had originally cost $165,000 for $55,000 in cash. The ma- chinery was three years old and had been depreciated using the double-declining-balance method assuming a five-year useful life and a residual value of $11,000. Using the financial statement effects template, show how the sale of the machinery affects the balance sheet and income statement.

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