Help on E8-27

c. On December 31 , Year 4, Verdi sold the machine to another company for $35,000. Using the financial statement effects template, show how the sale of the machinery affects the balance sheet and income statement. E8-26. Recording Asset Acquisition, Depreciation, and Disposal Using the information from E8-25, prepare journal entries for parts a,b, and c. E8-27. Computing Straight-Line and Double-Declining-Balance Depreciation On January 2, Haskins Company purchased a laser cutting machine for use in fabrication of a part for one of its key products. The machine cost $64,000, and its estimated useful life is five years, after which the expected salvage value is $4,000. Compute depreciation expense for each year of the machine's useful life under each of the following depreciation methods: a. Straight-line b. Double-declining-balance E8-28. Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale (FSET) Sloan Company uses its own executive charter plane that originally cost \$1.2 million. It has recordod straight-line depreciation on the plane for six full years, with an $120,000 expected salvage value at the end of its estimated 10-year useful life. Sloan disposes of the plane at the end of the sixth yeat. a. At the disposal date, what is the (1) accumulated depreciation and (2) net book value of the plane? b. Using the financial statement effects template, show how the disposal of the plane affects the balance sheet and income statement, assuming that the sales price is 1. Cash equal to the book value of the plane. 2. $300,000 cash. 3. $900,000 cash. E8-29. Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Using the information from E8-28, prepare journal entries for the three scenarios in part b. E8-30. Computing Straight-Line and Double-Declining. Pot