On July 1, 2013, Osceola Company retired a metal stamping machine that it had originally purchased for
Question:
On July 1, 2013, Osceola Company retired a metal stamping machine that it had originally purchased for $1,500,000. At December 31, 2012, the machine had a book value of $125,000 and was being depreciated on a straight-line basis at $75,000 per year. Osceola sold the machine for $200,000.
Required:
1. Prepare any journal entries necessary to record the disposal of the machine.
2. Next Level How does the disposal of the machine affect the 2013 financial statements?
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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