1)Multiple choice

a) 16,800 b)8,800 c)12,800 d)11,520 e)19,200

2)

3)

TB MC Qu. 08-171 (Algo) Mohr Company purchases a machine at... Mohr Company purchases a machine at the beginning of the year at a cost of $32,000. The machine is depreciated using the double- declining-balance method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. The machine's book value at the end of year 2 is: A company purchased a delivery van for $15,500 with a salvage value of $2,300 on October 1, Year 1. It has an estimated useful life of 4 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31. Year 1? Multiple Choice $825 $3,300 O $3,875 $1.292 $69 Onslow Company purchased a used machine for $192.000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31. at the end of its fifth year in operations, it is disposed of. Problem 8-6A (Algo) Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,000 cash and (b) it is sold for $84,000 cash. NO Dato Credit 1 December 31 Answer is complete but not entirely correct. General Journal Debit Cash 21,000 Loss on sale of machinery 27,900 Accumulated depreciation Machinery 146,800 Machinery OOOO 199,200 2 December 31 84,000 146,800 Cash Accumulated depreciation Machinery Machinery Gain on sale of machinery o 199 200 45,600