Fresh Leaf Tea Co. has a piece of machinery that it purchased 3 years ago for $500,000. As of July 1, the machinery has a book value of $460,000 and a fair value of $440,000. How are the following Fresh Leaf Tea Co. accounts effected on July 1?\ __5__ \ Cash\ __2__ \ Accumulated Depreciation - Machine\ __5__ \ Gain on Sale\ __5__ \ Loss on Sale\ __5__ \ Depreciation Expense\ __1__ \ Loss on Impairment\ __1__ \ Property, Plant, and Equipment\ 1. \ Debit $20,000\ 2. \ Credit $20,000\ 3. \ Debit $60,000\ 4. \ Credit $60,000\ 5. \ No Change

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On July 1 the following Fresh Leaf Tea Co accounts are affected 1 Debit 20000 Cash The cash account ... View the full answer