Here are selected transactions for Halverson Corporation for 2012.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2002.
The machine cost $47,000 and had a useful life of 10 years with no salvage value.
Mar. 31 Sold a computer that was purchased on January 1, 2009. The computer cost $43,400 and had a useful life of 7 years with no salvage value. The computer was sold for $25,000.
Dec. 31 Discarded a delivery truck that was purchased on January 1, 2009. The truck cost $30,000 and was depreciated based on a 6-year useful life with a $3,000 salvage value.
Instructions
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Halverson Corporation uses straight-line depreciation.