Sunny. Co. purchased a farming machine for $10,000 in cash on October 1 of Year 1. The machine has an estimated useful life of 8 years and an estimated salvage value of $2,000. Sunny. Co. uses the straight-line method for computing depreciation expense.

Which ONE of the following is included in the journal entry necessary to record the sale of the machine for $7,700 cash at the end of Year 3? Note: The sale takes place after the recording of depreciation expense for Year 3 has been completed.

Answer rating: 100% (QA)

The correct answer option is Debit Accumulated Depreciation Farming Machine Explanation When recordi... View the full answer